Obtain the annual report for Bombardier Inc. for the fiscal year ended December 31, 2011, either through the company’s website or through SEDAR (www.sedar.com).

Required:
a. For revenue recognition on long-term contracts, how does the company estimate the percentage of completion? What does the company do when it anticipates a loss on a contract?
b. In relation to long-term contracts, how much work in process inventory did the company have at the end of 2011? How much was billings on construction in progress? How much was inventory before netting out the amount for billings on construction in progress?