Chap 13: Construction Contracts

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May 17, 2014 at 7:18 pm #169227
moses elifuraha
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Dear tutor in Answer to Example 5 Workings to be shown in the “Statement of Profit or Loss and Other Comprehensive Income” in year 2 there is Costs recognised-general of $750,000. How arrived to this figure?
May 18, 2014 at 4:15 pm #169338
MikeLittle
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We have to recognise the forecast loss. So put the revenue amount in line 1, calculate the forecast loss and put that in line 3, then you can fill in $750,000 as costs to be recognised.
Do you know something? I get asked the same question on a regular and frequent basis!
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