A company Alfa uses IFRS as a basis for financial reporting. Alfa produces ships (it is shipyard). This company recognizes the revenue under "over time" approach. In 2019 the company started a construction of a new container ship. It is expected that the contract will be realized through 2019, 2020 and 2021.

At the moment of commencement of the contract the total price for its realization is 971000 EUR. At the very same date the budgeted (expected) total costs of realization of the contract are:598000 EUR.

At the end of 2019 the technical director estimated a completion of the contract at 0,34%. Till the end of this year 2019 the company incurred costs of the contract at 160000 EUR.

At the end of 2020 the management of the company reviewed the contract data and identified following information:

a. The contract price is 983000;

b. The estimated total costs of completion of the contract were changed - at the end of 2020 they are estimated at 615000 EUR

c. The stage of completion of the contract is 0,79%. This estimation was made by technical team.

d. Till the end of 2020 there incurred costs of 371000 EUR (they are all costs of realization of the contract incurred till the end of 2019 - they include costs of 2019 and 2020).

Task:

Calculate theEXPENSEto be presented on the contract in2020if management assumesOUTPUTmethod.