During the course of examining the draft accounts of Brigade plc for the year ended 31 December 2017, you have noted the following matter.

At 31 December 2017, the company was engaged in a fixed-price construction contract with no variable component with Contour Limited, which had commenced in February 2017 and was expected to take a further two years to complete. The following data was used at 31 December 2017, in order to prepare the draft accounts in accordance with IFRS 15 Revenue from Contracts with Customers.

€000 Fixed contract price 3,000 Total costs incurred to date 1,420 Estimated further costs to completion 1,350 Progress billings invoiced and received to date 1,200 The contract is considered to contain only one performance obligation that will be satisfied over time. At 31 December 2017 the contract was estimated to be 45% complete.

On 1 April 2018, due to technical difficulties, it was found that the estimated further costs to complete the contract had increased over those which existed at 31 December 2017 by an additional €500,000. None of these additional costs can be passed on to the customer or claimed from any third party. A loss-making contract can be deemed ‘onerous’ in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, with the loss reflecting the least net cost of exiting from the contract.

Requirement show how this contract will be reflected in the financial statements of Brigade plc for the year ended 31 December 2017.