Completed-contract Method

Completed-contract Method means:
an accounting method under which the net profit on an entire long-term contract is reported in the year when the contract is completed. Expenses allocable to the job are not deducted until the contract is completed. This method may be used for tax purposes only for home construction contracts and certain other small construction contracts. Former IRC (check if this IRC provision is current here) §460(b)(1)(a).

See also other Tax Terms and Definitions in U.S.A.

percentage-of-completion method.