Common use of Rendering of Services Clause in Contracts

Rendering of Services. Recognition of revenue from rendering of services can be achieved by using percentage of completion method, for results of services rendered on the date of balance sheets can be reliably estimated. The progress of the completion of rendering of services transactions can be determined according to the actual situation by using any of the methods provided as below: Measurements of the work have been finished. The services already provided account for the proportion of the total services to be provided. The cost already occurred for the proportion of the total cost to be estimated. The total revenue of rendering of services can be determined in accordance with payment from service receivers of contracts’ and agreements’ values received or receivable, except for the received or receivable contract or agreement prices which are not fair. The amount of revenue of current provision of services can be determined by total revenue of services rendered on the date of balance sheet timing completed process which should be decreased by the amount of revenue of rendered services determined accumulatively before during the accounting period. In case that results of services rendered can not be reliably estimated at the date of balance sheets, thereafter dealing respectively as bellow: The labors costs occurred are expected to receive compensation, the revenue of rendered services of which can thereafter be determined in accordance with the amount of service cost occurred, and also as the same amount of carry-over labor costs. The labor costs occurred are not expected to receive any compensation, which can thereafter be accounted as current profit and loss and revenue of rendered services can not be determined.