Section 53: Long-term contracts.

(1) Income and deductions relating to a long-term contract shall be taken into account on the basis of the percentage of the contract completed during the year of assessment. (2) The percentage of completion is determined by comparing costs allocated to the contract and incurred before the end of the year of assessment with the estimated total contract costs. (3) In this section, "long-term contract means a contract for manufacture, installation or construction or the performance of related services winch is not completed within the year of assessment in which work under the contract commenced, other than a contract estimated to be completed within six months of the date on which work under the contract commenced.