is completed contract acceptable for gaap?
Construction and engineering contracts normally use the percentage of completion method for revenue recognition. Under U.S. generally accepted accounting principles, the PCM is the preferred method for contract accounting, and GAAP places a number of conditions and restrictions upon its use. GAAP also allows the completed contract method, in which a contractor donât recognize expenses or revenues until the contract is finished.
1 Revenue from the sale of goods or provision of services should be recorded when ultimate collection is reasonably assured.  GAAP currently provides additional guidance allowing contractors to use either the completed contract or the percentage of completion method of revenue recognition, depending on their situation.