if construction in progress exceeds billings, when use percentage of completion method, what will be put into asset , and what will be put into liability? for example, is a contruction project, worth 1million, will finish in two years, total cost 0.2 million. first year cost is 0.1 million. is the 0.5 million will put into asset , also revenue, and another 0.5 put into liability? Thanks. the cost will be into CFO.
If construction in progress exceeds billings, only the net amount will be recorded as an asset.