Completed Contract Method - CCM


DEFINITION of 'Completed Contract Method - CCM'

An accounting method that enables a taxpayer or business to postpone the reporting of income and expenses until a contract is completed. This accounting method is used frequently in the construction industry or other industries whose businesses involve long-term contracts.

BREAKING DOWN 'Completed Contract Method - CCM'

This type of contract has benefits and disadvantages for a firm's balance sheet. On the one hand, because revenue recognition is postponed, tax liabilities are also postponed. However, this type of accounting method causes fluctuations within the balance sheet, which is often taken as a sign of risk and business inconsistency.

  1. Revenue

  2. Taxes

    An involuntary fee levied on corporations or individuals that ...
  3. Accounting

    The systematic and comprehensive recording of financial transactions ...
  4. Accrual Accounting

    An accounting method that measures the performance and position ...
  5. Expense

  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
Related Articles
  1. Active Trading

    An Introduction To Depreciation

  2. Fundamental Analysis

    Analyze Cash Flow The Easy Way

  3. Retirement

    The Essentials Of Corporate Cash Flow

  4. Professionals

    Financial History: The Evolution Of Accounting

  5. Options & Futures

    Uncovering A Career In Forensic Accounting

  6. Stock Analysis

    Fortinet: A Great Play on Cybersecurity

  7. Stock Analysis

    2 Catalysts Driving Intrexon to All-Time Highs

  8. Charts & Patterns

    Understand How Square Works before the IPO

  9. Technical Indicators

    4 Ways to Find a Penny Stock Worth Millions

  10. Professionals

    Chinese Slowdown Affects Iron Ore Market

  1. How is deferred revenue treated under accrual accounting?

  2. What are the differences between percentage of completion and the completed contract ...

    Each business is required to choose an accounting method to report income and expenses. It is important to fully understand ... Read Full Answer >>

  4. What are some examples of general and administrative expenses?


  6. How do dividend distributions affect additional paid in capital?


You May Also Like

Hot Definitions
  1. Financial Crisis

  2. Election Period

  3. Shanghai Stock Exchange

  4. Dead Cat Bounce

  5. Bear Market

  6. Alligator Spread

Trading Center

You are using adblocking software

so you'll never miss a feature!