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I suggest you to go thorugh IAS-11 (Construction Contract), it will certainly help you in resolving all of your problems related with reocrding of construction cost, revenue, % of completion of work and etc.
% of completion based on cost recording and resultant revenue are used to obtain the proportionate income earned during the year (In case of projects which require more than one year to complete). However, cash flows is altogether a different subject matter
For recording of accruals, it is important to note that in construction contracts, an accountant has limited role in this aspect. Accruals, pre dominantly material labour and overhead, are booked based on the assessment of the contracts manager and his team on ground in respect of work which has been completed and cost has been incurred but has not been certified by the employer of contract.
