Revenue is recognized as a project progresses, aligning earnings with completion milestones. This method offers a clear, consistent view of project profitability throughout its lifecycle.

In accordance with IFRS 15 and ASC 606, developers must evaluate when “control” transfers to the buyer to determine when revenue can be recognized. Key factors include:

• Contractual milestones
• Customer acceptance
• Costs incurred

Milestone-based contracts often make it easier to establish transparent, measurable revenue recognition.