With this method, revenue is recognized when the contract is fulfilled.
The contract is considered complete when the costs remaining are insignificant.
The choice between the two depends on the provisions of SOP 81-1 from the AICPA.
[1] The completed-contract method is used when costs are difficult to estimate, there are many ongoing small jobs (one time work), and projects are of short duration.
This method can be used only when the job will be completed within two years from inception of a contract.