before submitting the reports for audit the CFO has notice that the following information relating to the construction project of building the bridge which was awarded to Lafarge by the Road Development Agency (RDA) which commenced in 2017 has been omitted in the financial records. The initial price agreed in the contract is K90, 000,000. Lafarges initial estimate of contract costs is K80, 000,000. It will take 3 years to build the bridge. By the end of year 2017, Lafarges estimate of contract costs had increased to K80, 500,000.In year 2018, RDA approved a variation resulting in an increase in contract revenue of K2, 000,000 and estimated additional contract costs of K1, 500,000. At the end 2018, costs incurred included K1000, 000 for standard materials stored at the site to be used in the year 2019 to complete the project.Lafarge determines the stage of completion of the contract by using the input method. A summary of the financial data during the construction period is as follows The CFO has requested that you deal with this issue so that correct financial statements are submitted for audit. Required a) Citing relevant accounting standard explain what type of error has been made by Lafarge and explain how this error will be accounted for in the books (5 marks) b) Prepare all the required journal entries to update the records of Lafarge (show all your working) 15 marks c) Prepare a new Income statement and the statement of financial position after recording the above omitted transaction.(10 marks) d) Discuss the effect that this omission had on the profit before tax for 2018 and the impact that it would have had to the users of financial statement.(10 marks)