Contract Assets and Contract Liabilities

In this session, I discuss contract assets and contract liabilities.
✔️Accounting students or CPA Exam candidates, check my website for additional resources: farhatlectures.com/
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[@molly099]

Prof. Farhat, I just wanted to say that I really appreciate your video! The concept of contract asset contract liability I was not able to understand even after 2 hours of repeated reading Becker textbook and lecture, but I understood under 20 minutes by watching this lecture of yours. So, thank you!!!

[@AccountingLectures]

Great. You should subscribe to my FAR Becker supplement course. The course is mapped to Becker. farhatlectures.com/cpa_exams/far/far-gleim-2/becker-supplemental-course/

[@laverdadescatolica5]

God Bless you. You are awesome, Mr. Farhat!

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@karanm5228]

Thanks for great explanation. Very helpful!

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@myisopods4453]

This is amazing. Thank you so much!

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@abdumaliknasriddinov4938]

Thanks so much so understandable your videos appreciate your work keep going

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/ Start your free trial! Let’s get connected: LinkedIn: www.linkedin.com/in/professorfarhat Facebook: facebook.com/farhatlectures Instagram: instagram.com/farhatlectures/?hl=en Reddit: www.reddit.com/user/Farhatlectures

[@amrmunir4483]

Thanks for the great presentation really helpful for me , I have a question, is this mean we can record revenue even we didn't bill the customer based on performance we did on the project

[@HermanIpara-rt9pf]

Love your explanation.🤩

[@AccountingLectures]

Thank you! 😃 and please visit the website for more farhatlectures.com/

[@sahilkhan2470]

Thanks, very good explained!

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@Zuriel_CPA_MBA]

Is there other possible way to distinguish Contract Liability against Unearned Revenue?

[@mahaabdelkhalek2552]

Thank you so much, but I have a question, what's the difference between the passage of time and annual billing as a condition?

[@LionlankaLabs]

Great explanation

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@throwawaythrowaway1062]

So contract liability and contract asset are also just Accrued Rev and Unearned Rev?

[@keenyaorotiktok7201]

Please do a video of Tax Base of an Asset and Liability.

[@MiddleEast_Asian-oh7cf]

Mr Farhat. payment received monthly from customer against interim payment certificate. Invoice will be accepted by the customer while completion of the project. since i am receiving payment on time - journal will be Dr. Bills Receivables ( instead contract asset) A/c Cr. Unbilled Revenue ( instead of revenue) - is it right?

[@user-xq9li4qx8l]

Okay thank you.

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@shabeero.p272]

Shouldn't be revenue recognized on the basis of percentage of completion % ?

[@tenyearslater1396]

I think the professor is just giving examples how to record under different conditions. The video should be the completion contract law. According to the rate of completion contract method, it is sufficient to confirm the percentage of completion. I don't know if my understanding is correct, I look forward to the professor's guidance, thank you!

[@manoftomorrow5987]

I'm still missing 20k. The expenses is 120k but you only credited cash with 100k.

[@theresamuniz1939]

You are right. He missed out the 20k supposed to be the total cost as he paid 120k to match the revenue recognized by that time totaling 120k.