Question 5 Holiday Berhad, a renowned construction company, signed a long-term contract to build a luxury wellness and spa centre in the heart of Penang during the financial year ended 31 December 20x5. The contract commenced on 1 January 20x5 at a contract price of RM12,000,000. The contract is expected to be completed on 31 December 20x7. The company applies the percentage-of-completion method assuming that the degree of completion is based on the revenue realised. The following information was relevant as at 31 December 20x5 and 20x6: Cumulative value of works recognised and invoiced 31 Dec 20x5 RM6,000,000 Cumulative costs incurred to date RM4,800,000 Cumulative receipts RM4,200,000 Estimated costs to completion RM3,200,000 31 Dec 20x6 RM8,400,000 RM6,000,000 RM6,000,000 RM2,400,000 Required: Calculate the amounts which should appear in the income statement and statement of financial position of Holiday Berhad in respect of the above contracts for both years.