Long-term construction-type contracts;

              Accounting Research BULLETINS
October, 1955
No. 45
•
Issued by the Committee on Accounting Procedure American Institute of
Long-term Construction-type Contracts
Certified Public Accountants
270 Madison Avenue, New York 16, N. Y.
1. This bulletin is directed to the accounting problems in relation to construction-type contracts in the case of commercial organiza-tions engaged wholly or partly in the contracting business. It does not deal with cost-plus-fixed-fee contracts, which are discussed in Chap-ter 11, Section A, of Accounting Research Bulletin No. 43*, other types of cost-plus-fee contracts, or contracts such as those for prod-ucts or services customarily billed as shipped or rendered. In general the type of contract here under consideration is for construction of a specific project. While such contracts are generally carried on at the job site, the bulletin would also be applicable in appropriate cases to the manufacturing or building of special items on a contract basis in a contractor's own plant. The problems in accounting for construction-type contracts arise particularly in connection with long-term con-tracts as compared with those requiring relatively short periods for completion.
2. Considerations other than those acceptable as a basis for the recognition of income frequently enter into the determination of the
*Restatement and Revision of Accounting Research Bulletins, American Institute of Accountants, 1953.
3