Percent of Completion Made Easy and Finally Made Sense!! - Pass with Jack - FAR CPA EXAM 2026

Описание: Well, TikTok is holding this video hostage and not releasing it, so I'm releasing it here on YouTube!

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Heavily requested topic and might as well be a simulation on your FAR exam: Percent of Completion Revenue Recognition for Construction Contractors! This one is fun because there's NOTHING complicated with doing it! The only thing you need to understand is the logic behind the why and how. If costs are estimates, they can increase or decrease through the years as nothing stays true to estimate in life; when you have estimated costs, you have estimated profits; and the most important for PoC is if you have actual costs compared to estimated costs, you can estimate how much closer you are to completing that contract (hence percent of completion)!

If you crave more information on this, such as journal entries and the movement of the CIP account (which is equal to your revenue), I can make another whiteboard video showing you how things move. As always, if you like the style in which I teach, I implore you to check out my TikTok Bio and check other content out!

Let me know how I did to teach you in the comments section below!