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Construction contracts

Forums › Ask CIMA Tutor Forums › Ask CIMA F2 Tutor Forums › Construction contracts

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 9, 2016 at 6:32 am #362509
    sguhman
    Member
    • Topics: 15
    • Replies: 30
    • ☆

    Hi

    If its loss making then we take all cost to p&l, but am unsure how to treat in sofp. In some questions it gets you to work out percentage completion and you then have to apply this to
    the profit and then add only the costs incurred to date and then deduct
    What has been invoiced to the client to arrive at figure for sofp, I think that’s correct?

    December 14, 2016 at 4:52 pm #363694
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7149
    • ☆☆☆☆☆

    Hi,

    If it is loss making then the loss is recognised as part of the amounts due from customers and deducted.

    Thanks

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