What's the meaning of Revenue recognition： Long-term contracts？

Revenue recognition: Long-term contracts refer to the accounting method used to recognize revenue from contracts that extend over a long period of time, typically more than one year. This method requires companies to estimate the total revenue and costs associated with the contract and recognize a portion of the revenue and costs each period based on the percentage of completion of the project. This allows for a more accurate representation of the financial performance of the company over the life of the contract.