Laidlow plc is a construction contractor which prepares financial statements to 31 May each year. The following information relates to a contract with a customer which began during the year to 31 May 2023 and which was still in progress on that date:

The contract is to be treated as a single performance obligation which is satisfied over time. The company measures the progress made on a contract by comparing the costs incurred for the work performed to date with the estimated total contract costs.
(a) Show how this contract would be reflected in the company's financial statements for the year to 31 May 2023.
(b) How would the accounting treatment differ if the contract price was only £480,000 but all of the other figures remained unaltered?

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Contract price Costs incurred to date: - for work performed up to 31 May 2023 - to acquire materials for use in future work Estimated further costs to completion Invoiced to customer up to 31 May 2023 Amounts received from customer £000 600 190 30 280 175 130