Eagle Limited has a three$-$year contract; at the $31$ December $2020$ the outcome of the contract cannot be reliably estimated. The cost incurred to date is $$12$m$,$ expected cost to completion is $$168$m and the contract price is $$240$m$.$ The project is $16\%$ complete. At this stage only $80\%$ of the cost to date is deemed recoverable.

REQUIRED:

Prepare the Statement of Expected Profit or Loss and the Statement of Comprehensive Income for the financial year ended $31$ December $2019.$ Explain to the directors of the company in the form of a memo, how the above contract will be treated according to IFRS $15.$