Recognizing Revenue on a Percentage-of-Completion Basis

As the new controller for Evanoski Construction Company, you have been advised that your predecessor classified all revenues and expenses by project, each project being considered a separate venture. All revenues from uncompleted projects were treated as unearned revenue, and all expenses applicable to each uncompleted project were treated as work in process inventory. Thus, the income statement for the current year includes only the revenues and expenses related to projects completed during the year. What do you think about the use of the completed-contract method by the previous controller? What alternative approach might you suggest to company management?