QUESTION 4 129 marks] PART A Lucca Pavers Limited is a construction company that specializes in the construction of roads and bridges. The financial year end of the company is the 31" of March each year. During the year ended 31 March 2020 the company commenced two construction contracts that are expected to take more than two years to complete. The position of each contract at 31 March 2021 is as follows: CONTRACTS Agreed Contract Price PORTLAND $000 TRIDENT $000 12,000 3,100 Cost incurred to date (at 31 March 2021) 5,640 1737 Cost to completion 3,760 2123 Agreed value of work completed at 31 March 2021 2,200 1680 Progress billings invoiced at 31 March 2021 500 1720 Cash received 450 1200 The company uses the input approach to determine the percentage of completion for all contracts. The company considers that the outcome of a contract cannot be estimated reliably until a contract is 30% complete. It is, however, probable that the customer will pay for costs incurred so far. In relation to the Portland contract $2,000,000 in revenue and $1200,000 in cost was recognized in the year ended 31 March 2020. REQUIRED: a) Calculate the amounts which should appear in the income statement and statement of financial position of Lucea Pavers Limited at 31 March 2021 in respect of the above contracts. (18marks) b) According to IFRS15 how should revenue and cost be accounted for when the outcome of a contract cannot be reliably estimated? (4 marks) PART B Define the term Cash Generation Unit (CGU) and explain how it is used in the determination of the level of impairment that should be ascribed to certain assets. (7 marks)