MACTAR have a series of contracts to resurface sections of motorways in England and Wales. The

scale of the contract means several years' work, and each motorway section is regarded as a

separate contract.

The following contracts are currently underway:

Contract M1 M6 M62

m m m

Contract sum 3.0 2.0 2.5

Costs to date 2.1 0.3 2.3

Estimated costs to complete 0.3 1.1 0.8

Certified value of work completed to date 1.8 0.1 1.3

Progress billings applied for to date 1.75 0.1 1.0

Payments received to date 1.5 - 0.75

Note: Contract M62 has had major difficulties due to difficult terrain, and the contract only allows for

a 10% increase in contract sum for such events.

Instructions

In accordance with IFRS, calculate for each contract the amount of profit (or loss) you would show

for the year, and show how the contracts would appear in the statement of financial position.