Explore the guidelines and methods established by our Estimate-at-Completion Policy for accurate revenue recognition and project profitability assessments. It highlights the policies and procedures for measuring estimates at completion (EAC), ensuring that projects' financial health is accurately reflected in the company's income statement. The document delineates risk factors and significant events impacting project outcomes, offering a structured approach to evaluating financial transactions linked to operational risks.

Additionally, it specifies the triggers for updating EACs, such as burden rate adjustments or significant risk developments, and assesses the timeliness and accuracy of financial reporting. The policy also emphasizes the need for supporting documentation and rationale behind EAC levels, enabling conducting thorough reviews of estimates. Overall, this policy serves as a vital tool for ensuring compliance with established financial guidelines while enhancing their understanding of the company's project management and financial practices.

The finance director, program manager and program control administrators make an assessment for each program by identifying significant risk factors, such as:

• Program complexity
• Schedule
• Technology challenges
• Project team expertise