Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Entity A started a three-year contract to build a new office building on 1 April 2019. The contract had a fixed price of $90,000,000. The

Entity A started a three-year contract to build a new office building on 1 April 2019. The contract had a fixed price of $90,000,000. The entity will satisfy the performance obligation over time.

The entity incurred costs to 31 March 2020 of $77,000,000 and estimated that a further $33,000,000 would need to be spent to complete the contract.

The entity measures the progress of contracts using work completed compared to the contract price.

At 31 March 2020, a surveyor valued the work completed to date at $63,000,000.

REQUIRED:

Measure the contract revenue and the contract cost in the Statement of Profit or Loss for the year ended 31 March 2020 respectively.

ANSWER:

Contract revenue = $Blank 1

Contract cost = $Blank 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hong Kong Auditing Economic Theory And Practice

Authors: Simon Fung, Ferdinard A. Gul

3rd Edition

9629372347, 978-9629372347

More Books

Students also viewed these Accounting questions