Part A (10 Marks)

Fortuna Ltd was contracted to build a new student apartment block for La Trobe University at Bundoora campus for $ 21,000,000. Payment of three $7,000,000 instalments were due and paid on June 30 of each year. The expected and actual costs at the end of each year are detailed as follows:

Year	Expected	Actual
2021	5,000,000	5,000,000
2022	6,500,000	7,500,000
2023	6,000,000	6,000,000
Total	17,500,000	18,500,000

Note: The outcome of the project can be measured reliably.

Required:

Compute the percentage of completion, gross profit and revenue to be recognised for each of the three years respectively according to AASB15 Revenue from Contracts with Customers, assuming that the outcome of the contract can be reliably estimated.

Part B (6 Marks)

It has been discussed in a forum that there is a difference between a defined benefit plan and defined contribution plan. Briefly discuss the difference between these two plans and advise which plan poses more of a challenge to the accountants, and why?