Completed Contract Method - CCM


Completed Contract Method - CCM
An accounting method that enables a taxpayer or business to postpone the reporting of income and expenses until a contract is completed. This accounting method is used frequently in the construction industry or other industries whose businesses involve long-term contracts.

This type of contract has benefits and disadvantages for a firm's balance sheet. On the one hand, because revenue recognition is postponed, tax liabilities are also postponed. However, this type of accounting method causes fluctuations within the balance sheet, which is often taken as a sign of risk and business inconsistency.


Investment dictionary. . 2012.

Look at other dictionaries:

  • completed contract method — Completed contract method. A method of reporting profit or loss on certain long term contracts. Under this method of accounting, gross income and expenses are recognized in the tax year in which the contract is completed. This method should be… …   Black's law dictionary

  • completed contract method — Completed contract method. A method of reporting profit or loss on certain long term contracts. Under this method of accounting, gross income and expenses are recognized in the tax year in which the contract is completed. This method should be… …   Black's law dictionary

  • completed contract method — An accounting method that does not record the income and expenses of a long term project until the project is completed. See also accrual method, cash method. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

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  • Percentage Of Completion Method — An accounting method in which the revenues and expenses of long term contracts are recognized yearly as a percentage of the work completed during that year. This is the opposite of the completed contract method, which allows taxpayers to defer… …   Investment dictionary

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  • cash method — cash meth·od n: cash basis at basis Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cash method …   Law dictionary

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