PERFORMANCE OBLIGATIONS SATISFIED OVER TIME Constructor Company commences construction of an artificial snow skiing ramp on 1 January 20X8 for Powder Company. The construction contract is considered to represent one *performance obligation' and will be the unit of account for contract accounting. It signs a fixed-price contract for total revenues of $16 million. The project is expected to be completed by the 31 December 20X9. The expected total cost, as estimated at the commencement of construction, is $10 million. The expected costs to complete the construction project match #the actual costs throughout the project. The following data relates to the project: 20XS ($000) 20X9 ($000) Costs for the year 4,000 6,000 Costs incurred to date 4,000 10,000 Estimated costs to complete at year end 6,000 0 Progress billings during the year 7,000 9,000 Cash collected during the year 7,000 9,000 Constructor Company uses cost (an input measure) as the basis for measuring progress towards satisfaction of the performance obligation. The asset under construction is deemed to be under the control of Powder Company throughout the period of construction. For the case provided above involving Constructor Company, what is the percentage of progress complete at 31 December 20X8? For the case provided above, what revenue would therefore be recognised for the year ending 31 December 20X8? S