What do the completed contract method of accounting for long term contract use for?

The completed contract method of accounting is used for long-term contracts to recognize revenue and expenses only when the contract is fully completed. This approach is beneficial for projects where it is difficult to estimate the percentage of completion or when the outcome is uncertain. It provides a clear view of profitability at the conclusion of the project, as all costs and revenues are recorded at once, avoiding potential distortions in financial statements during the contract's duration. However, this method can lead to significant fluctuations in reported income, as revenue is recognized only at the end of the contract.