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CASTLE A M & CO Reported by ERNA ROBERT FORM 4(Statement of Changes in Beneficial Ownership)Filed 01/02/14 for the Period Ending 12/31/13 AddressTelephone CIK Symbol SIC Code Industry Sector Fiscal
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How to fill out only proportionate completion method

01
To fill out only proportionate completion method, follow these steps:
02
Determine the total contract price.
03
Calculate the proportionate completion percentage by dividing the cost incurred to date by the total contract price.
04
Multiply the proportionate completion percentage by the total contract price to determine the revenue recognized for the period.
05
Subtract the revenue recognized for previous periods to get the revenue recognized for the current period.
06
Record the revenue recognized and the corresponding cost incurred in the financial statements for the period.
07
Repeat the process for subsequent periods until the contract is completed.
08
Make any necessary adjustments or disclosures in accordance with accounting standards and regulations.

Who needs only proportionate completion method?

01
The only proportionate completion method is typically used by construction companies or contractors that are involved in long-term projects.
02
It allows them to recognize revenue and expenses in proportion to the completion of the project rather than waiting until the project is fully completed.
03
This method is useful for companies that have ongoing projects with significant costs and revenues that occur over an extended period of time.
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Only proportionate completion method is a method of accounting for long-term contracts that recognizes revenue and expenses based on the percentage of completion of the contract.
Certain businesses that engage in long-term contracts, such as construction companies, may be required to use the only proportionate completion method for accounting purposes.
To fill out the only proportionate completion method, you need to calculate the percentage of completion of the contract and then allocate revenue and expenses accordingly.
The purpose of the only proportionate completion method is to recognize revenue and expenses in a way that reflects the progress of long-term contracts.
The only proportionate completion method requires reporting on the percentage of completion, revenue recognized, expenses incurred, and any additional disclosures required by accounting standards.
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