Foundation Limited entered into Contract Z, a fixed-price construction contract with no variable component, on 1 September 2017. Contract Z is considered to contain only one performance obligation which will be satisfied over time and that an input method that uses the percentage of completion based on costs incurred appropriately predicts performance under the contract. Further details about Contract Z are:

Completion date a 30 April 2019 Costs incurred to 31 December 2017 €440,000 Costs to complete €1,760,000 ’

Contract price €2,000,000

% completion 20 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 Calculate the profit/loss to be recognised in the statement of profit or loss and other comprehensive income of Foundation Limited for the year ended 31 December 2017 in respect of Contract Z.