Estimate-at-Completion Policy

This policy establishes guidelines and methods for maintaining an accurate revenue recognition process by periodically assessing project profitability, so the overall revenue and cost of projects are correctly stated on company’s income statement.

Under this policy all company programs are reviewed at least quarterly. The finance director, program manager and program control administrators make an assessment for each program by identifying significant risk factors and events that have occurred. The company program review process provides a better understanding of the program’s current state and then, if necessary, translates any operational risk or issue into financial transactions.