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Entity A is a construction company listed in Hong Kong. It commenced a contract to build a bridge for Entity B in the year ended
Entity A is a construction company listed in Hong Kong. It commenced a contract to build a bridge for Entity B in the year ended 30 September 2020. The contract price was agreed at $2,800 million and the total expected costs of the contract have been confirmed as $1,500 million. 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 2020: . Revenue . Cost of Sales $1,000 million $480 million $520 million Profit The following figures are also relevant in relation to this contract: 2020 Million 2021 Million $1,020 $2,100 . Costs incurred to date $660 $880 Work certified to date 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 2021. ANSWER: Contract revenue = $ Million Contract cost = $ Million
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