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Architect firm revenue recognition per FRS102

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What is the most often used calculation for the % of completion method ( firm has no construction contract - so excluding surveys  - , just design) : 

% cost to date / total estimated costs ( which means lots of prospective recalcs at each month end)

OR 

 completion of a physical proportion of the contract work / completion of proportion of the service contract ( and what does this means exactly ? Would it apply to the RIBA stages ?  )

Thanks,

 

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08th Apr 2019 21:24

Not sure what you mean? A consultant firm (eg structural engineer) will usually have payment terms in their contract that are either tied to months or milestones like riba stage sign off.

These are negotiable...

But you mention 'physical work', so do you mean the construction phase?

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to WhichTyler
09th Apr 2019 20:11

Yes this is the point of my question ... what is a physical proportion ?

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