Long-term contract accounting is the application of principles and techniques for planning, controlling, and evaluating contracts that last for more than one year. This includes recognizing revenue associated with the performance of long-term contracts, as well as controlling costs incurred to support those contracts. It is important for businesses to understand their contractual obligations and accurately value their assets in order to remain competitive. Long-term contract accounting helps organizations plan for changes in the marketplace, better manage their resources, and maximize profits over time.