How do we recognize revenue for ongoing project/ incomplete project in a construction company when we prepare a quarterly financial statement?

I think it must be as per Percentage of Completion (POC) method (IAS)

As per IAS,

If the outcome of contract reliably measured, recognize cost & revenue on the basis of stage of completion method.  

If the outcome of contract can not reliably measured, revenue should be recognized to the extent of cost considered to be recoverable.

. percentage from Completion rate of total project 

by percentage from Completion rate of total project

actual cost till the FS over the total estimated cost fro the project the multiplied to contract amount

Where revenue is received over the passage of time, the percentage of completion method should be used. This method should only be used if :

Revenue can be measured reliably  ;

Cost to be incurred can be measured reliably ;

Its probable that future economic benefits will flow to the seller and

The % of completion at balance sheet date can be estimated reliably

only when the above conditions are met, revenue can be recognized

• he amount of revenue can be measured reliably;

• it is probable that the economic benefits will flow to the seller;

• the stage of completion at the balance sheet date can be measured reliably; and

• the costs incurred, or to be incurred, in respect of the transaction can be measured reliably.

• he amount of revenue can be measured reliably;

• it is probable that the economic benefits will flow to the seller;

• the stage of completion at the balance sheet date can be measured reliably; and

• the costs incurred, or to be incurred, in respect of the transaction can be measured reliably.

AS A % OF COMPLETION OF TOTAL PROJECT

We can recognize revenue from an ongoing project on the percentage of  completion basis or completed contract basis,  if its realizable at that particular stage. This depends on the agreement between the parties concerned.

In this scenario, percentage of completion method to be used to recognize revenue and respective cost as well.

Percentage  of completion method

revenue for ongoing project/ incomplete project in a construction company should be calculated as per percentage of complition

As a percentage of completion measured at the last achieved/accepted milestone against the project overall duration, or as a percentage of completion at specified date against the overall project expected closing date.