when revenue is recognized in proportion to work completed under a contract
Percentage of Completed Method. The percentage of completion method is used when the contract involves the completion of more than one act. Under the percentage of completion method, revenue is recognized proportionately with âthe extent of work accomplishedâ by the contractor, by reference to the performance of each act. Many contractors have adopted what they believe to be the percentage of completion method using billings or periodic payment certificates as a basis for recognizing revenue.