Expert Builders Limited is involved in three different fixed-price construction contracts, none of which has a variablé component, at 31 December 2017:

Each contract is considered to contain only one performance obligation which will be satisfied over time. It has been determined that an output method that uses the value of work certified as a proportion of total contract revenue appropriately predicts performance under each contract. 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 the above contracts would be included in the financial statements and notes of Expert Builders Limited for the year ended 31 December 2017.

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Contracts Contract price (at inception) 1 2 3 4,000,000 2,000,000 900,000 Cost incurred to date 2,560,000 450,000 100,000 Estimated cost to complete 640,000 1,350,000 850,000 Value of work certified 2,400,000 200,000 90,000 Progress billings to 31 December 2017 2,200,000 200,000 80,000 Cash receipts to 31 December 2017 2,000,000 180,000 70,000