Recognizing Revenue-Long-Term Construction Projects
Response to the following problem:
In the year 2002, Salt Lake City, Utah, hosted the Winter Olympics. To get ready for the Olympics, most of the major roads and highways in and around Salt Lake City were renovated. It took over three years to complete the highway projects, and Wasatch Constructors, the construction company performing the work, didn't want to wait until the work was completed to recognize revenue.
How should the revenue on these highway construction projects have been recognized?