I have just started a new job. Most of the company's projects are lump sum, billed by milestones, % of contract, usually 50% at the beginning and 50% at completion. The accountant before me recognized 50% revenue right away, accrued cost and showed that the project is 50% complete before it even started. The company was not happy with this approach. The only way I know how to do it is to defer the revenue etc. etc. The problem is - I am not sure they even have this account in their chart. Its a mess I know, and my job is to clean it up. Are there any other ways to do it right, please? Oh, forgot to say - Sox controls do not apply in the company.