If a job is in a loss position, GAAP requires that the loss be recognized in the first period when it is determined a loss will be incurred. Therefore, if a job has a negative gross profit amount projected at completion, a second line displays on the Contract Status Report that includes the provision for loss amount. Furthermore, if there is more than one job in a loss position, a recap section will list these jobs separately from the other jobs, and will include the job number, job name, and provision for loss amount.

Any provision for loss amounts are accounted for in the income statement as an additional cost rather than as a reduction of contract revenues.