I would like to know the difference between the two revenue recognition methods which are:
1) Forecast - Actual
2) Wbs
In effect, I didn’t make any difference between both. If we go based on forecast - actual, it looks at the total forecast and compares with the actual to arrive at the percentage of progress.
The same way, in wbs, it looks at the wbs cost tracking and this also looks at the total budgeted cost V/s Actual cost and arrives at the percentage.
I looked at a simple project with two hour transactions as actual which had a budget of 10,000. When I did a revenue recognition in both ways, I didn’t find any difference. Appreciate your response.
