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IAS11 Construction Contract (Technical Article)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS11 Construction Contract (Technical Article)

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 25, 2014 at 9:14 pm #166332
    seagoat
    Member
    • Topics: 22
    • Replies: 575
    • ☆☆☆☆

    Sir, could you kindly explain how to do below example 1 (Lily) from Technical Article with the method presented in your lectures?

    Progress payments 1,400
    Contract price 2,736
    Work certified complete 1,824
    Contract costs incurred to
    31 December 2008 2,160
    Estimated total cost at
    31 December 2008* 2,520

    The working for SoFP is same technique as in article
    Cost YearToDate
    + recognised profit
    – amount invoiced (which i assume is another meaning of progress payments)

    but i cannot do the recognised profit for SoPL.

    Im pretty much stuck with having a good approach to calculation since two evenings.

    P.S.
    On the other hand I was trying to do example 3 from your lectures with the technique presented in Technical Article but i couldnt get to Profit of 10.

    April 26, 2014 at 7:57 am #166356
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23329
    • ☆☆☆☆☆

    Contract is 2/3 complete

    W1

    2/3 x contract value 1,824
    2/3 x total costs 1,680
    Profit recognised 144

    W2

    Costs to date 2,160
    Attributable profit (W1) 144
    2,304
    Amounts invoiced 1,400
    Amount due from customers 904

    Did I get it right?

  • Author
    Posts
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