Can any one clear my concept regarding the presentation of ”Prfoit & Loss from Construction Contracts”.
When solving the above title question I took the net figure (Profit of $ 20,000 from Construction contract) and present it after Gross Profit.
or I should follow , as the question solved.
Please let me now which is better as per IAS .
I haven’t got the question book with me, and I can’t remember how it was dealt with in the suggested solution. However, I really don’t think that you will need to worry about the exact positioning of the profit from the construction contract – it’s hardly going to feature in the examiner’s marking scheme! can you really believe that Steve Scott is going to instruct his marking team and say something like “….and if the student has put the construction contract profit in this position, then that’s worth a mark” or equally “….if they haven’t put it in this position, then they lose a mark”?
Don’t worry about it!
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