Entity A commenced a contract to build a non-current asset for Entity B in the year ended 30 September 2018. The contract price was agreed at $1,500 and the total expected costs of the contract have been confirmed as $800. Entity A will satisfy the performance obligation over time.

The following figures were correctly recognised in the Statement of Profit or Loss for the year ended 30 September 2018:

• Revenue $450
• Cost of Sales $240
• Profit $210

The following figures are also relevant in relation to this contract:

• 2018 2019
• Costs incurred to date $325 $575
• Work certified to date $450 $1,050

Entity A recognises progress on a work certified basis.

REQUIRED:

Measure the contract revenue and contract cost for Entity A in its Statement of Profit or Loss for the year ended 30 September 2019.

ANSWER:

Contract revenue = $Blank 1

Contract cost = $Blank 2