Completed Contract Method - CCM
Categories: Accounting, Metrics
In accounting, the completed contract method recognizes revenue only when the job is considered to have been legally completed.
Why is this useful? Well, if the project/contract in question takes place over two tax years, the income is only reported in the second tax year (when the contract is completed), so it delays the accounting of revenue.
The taxman will come eventually, but delaying the paying of taxes can be a good thing.