Under the "percentage-of-completion" method actual costs are reported on the income statement plus a proportion of all project revenues (or billings) equal to the proportion of work completed during the period. The proportion of work completed is computed as the ratio of costs incurred to date and the total estimated cost of the project.
Jan 14 2019 · OP Capital Projects; 10-year plan; 2. Construction and Improvements: Plant Funds: All costs associated with the construction of new buildings and structures should be capitalized. These should be capitalized when construction are 90% complete or a certificate of occupancy has been issued.