In construction company accounting, the percentage-of-completion method demands meticulous project management to ensure accurate financial reporting and compliance. This involves managing project changes effectively, tracking progress through milestones, and continually updating estimated costs to reflect the project’s financial health. Both methods of POC involve a significant level of estimation of cost to complete a project. Estimates to complete are highly subjective, could be biased, and actual results may differ from estimated results. By recognizing revenue and expenses progressively, businesses can more effectively manage cash flow. This provides a more accurate financial picture of a company’s performance, especially for projects spanning multiple accounting periods. Shortly after the scandal broke, the CEO…