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In chapter 13 IAS 11 notes three workings are shown on one page…second and third working lead to figure that is amount due from customer. I am confused as to why are there two workings for same thing and why do they lead to different answers and why are they both shown in statement of financial position.
Have you listened to the lecture?
Listen to the lecture and, if you’re still not clear, post again
ok my understanding is that w2 was to calculate the amount that we had done but not invoiced but had done it……whereas w3 was to show the amount that we had invoiced but not received from customer….. Is that right???
example 5 of this chapter in the workings of statement of profit or loss for year 2 how is that figure reached i cant understand this and i did not find a lecture on that over there…to be more specific i cant understand how did we end up on that cost figure???
So, you’re happy now with the two workings showing “amounts due from customers”
Example 5 is explained in recorded lectures! However, to save you some time, here is the explanation in brief of how to arrive at the cost figure for working 2.
At the end of year 2, a loss overall is forecast. We need to recognize that loss in full. So in working 1, the first figure is as normal based on percentage complete. The second figure to put into working 2 is the loss to be recognized. Therefore the lets to be recognized becomes the third figure to be put into the working.
Check the lecture – I am certain that it is in there
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