There are two ways to eliminate a fixed-price project.

• Elimination with the completed percentage principle

  When a fixed-price project is eliminated using the completed percentage principle, the WIP value in the balance sheet is removed, and no revenue or costs are recognized on the profit-and-loss account.

• Elimination with the completed contract principle

  When a fixed-price project is eliminated using the completed contract principle, the WIP value in the balance sheet is removed, and the revenue and costs are recognized on the profit-and-loss account.