Quarterly report pursuant to Section 13 or 15(d)

Revenues in Excess of Billings - Long Term

v3.20.4
Revenues in Excess of Billings - Long Term
 6 Months Ended
Dec. 31, 2020
Contractors [Abstract]  
Revenues in Excess of Billings - Long Term

NOTE 9 – REVENUES IN EXCESS OF BILLINGS – LONG TERM

 

Revenues in excess of billings, net consisted of the following:

 

    As of     As of  
    December 31, 2020     June 30, 2020  
             
Revenues in excess of billings - long term   $ 376,874     $ 1,341,575  
Present value discount     (20,815 )     (41,286 )
Net Balance   $ 356,059     $ 1,300,289  

 

Pursuant to revenue recognition for contract accounting, the Company had recorded revenues in excess of billings long-term for amounts billable after one year. During the three and six months ended December 31, 2020, the Company accreted $27,766 and $41,826, respectively. During the three and six months ended December 31, 2019, the Company accreted $13,821 and $27,681, respectively, which were recorded in interest income for those periods. The Company used the discounted cash flow method with an interest rate of 4.65% and 4.35% for the period ended December 31, 2020 and June 30, 2020, respectively.