Description

Swiss GAAP FER 22 “Long-terms contracts” stipulates that, if a number of preconditions are met, long-term production jobs are recognised according to the percentage-of-completion method (POCM). Under POCM, any profit is recognised proportionally over the term of the job. If the preconditions for the POCM are not given, the long-term contract needs to be recognised according to the completed contract method (CCM). The applied accounting principles for the recognition of long-term contracts, the method used to determine the degree of completion and the amount of revenue recognised in the period from long-term contracts accounted for under POCM have to be disclosed in the notes.