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The need for project accounting arose for a specialised area from the character of projects remaining taken care of as separate temporary individualised entities set up for the objective of offering a number of company items.[three] As the character of every project may very well be various for the business-as-standard activities operate with the company; existent management accounting and monetary accounting skills were recognised as insufficient to accurately suggest around the treatment and financial reporting of the project. Consequently, a brand new area emerged throughout the accounting sphere – project accounting.
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Project accounting is often employed by government contractors, in which published here the chance to account for expenses by agreement (and sometimes contract line item, or CLIN) is often a requirement for interim payments.
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