The completed contract method (CCM) of accounting considers all income and expenses directly related to a long-term contract as received when work is completed. The date of completion is spelled out in the contract and is often months or even years away from the date work begins.

What is a completion contract?

A contract is considered completed when there are no significant costs or risks remaining.

Who uses completed contract method?

The completed-contract method is used when costs are difficult to estimate, there are many ongoing small jobs (one time work), and projects are of short duration. This method can be used only when the job will be completed within two years from inception of a contract.