Question
A company entered into a contract with a customer on 1 November 2004. The contract was scheduled to run for two years and has a
A company entered into a contract with a customer on 1 November 2004. The contract was scheduled to run for two years and has a sales value of $40 million. The company will satisfy the performance obligations over time. At 31st October 2005, the following details were obtained from the company records: Costs incurred to date 16$ Estimated costs to completion 18$ Progress at 31 October 2005 45% Applying IFRS 15, how much revenue and cost should the company recognize in its profit and loss statement at 31 October 2005? Select one:
a. Revenue= 18 mill, Cost=16 mill
b. Revenue=18 mill, Cost=15.3 mill
c. I want to leave this answer blank
d. Revenue=40 mill, Cost=15.3 mill
e. Revenue=40 mill, Cost=34 mill
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started