Bridgenorth Co Bpp

Hi tutor,

I am struggling with the answer to the below question:

Bridgenorth Co has undertaken a $5 million contract to repair a railway tunnel. The contract was
signed on 1 April 20X8 and the work is expected to take two years. This is a contract where
performance obligations are satisfied over time and progress in satisfying performance
obligations is to be measured according to % of work completed as certified by a surveyor.
Bridgenorth Co has an enforceable right to payment for performance completed to date.
At 31 December 20X9 the details of the contract were as follows:
20X9 20X8
$ $
Total contract value 5,000,000 5,000,000
Costs to date 3,600,000 2,300,000
Estimated costs to completion 700,000 2,100,000
Work invoiced to date 3,000,000 2,000,000
Cash received to date 2,400,000 1,500,000
% certified complete 75% 40%

What is the contract asset to be recognised at 31 December 20X9?

The aswer in revision Kit is following:

Costs to date 3,600,000
Profit to date ((5,000,000 – 4,300,000) * 75%) 525,000
4,125,000
Less amounts invoiced (3,000,000)
1,125,000

However, I also read that this method corresponds to IAS11, based on IFRS 15 (which is updated version) Contr asset= Revenue recognised to date – Invoices to date

Below is the article that I am refering to:

The calculation of the contract asset under IFRS 15 outlined above is the technically correct one and the FR examining team would expect candidates to take this approach going forwards. However, we also recognise that a significant portion of candidates may still be using the IAS 11 approach discussed in this article. For the exam periods up to and including June 2022, the FR examining team will award credit for either approach. The importance of showing your workings in Section C (Constructed Response questions) cannot be over emphasised as the marker will be able to award credit based on the workings available.

From September 2022 onwards, credit will only be awarded for the correct IFRS 15 approach.

Written by a member of the FR examining team

Based on this example:
Revenue recogn: 5000000*0.75=3750000
Invoices to date: 3000000
Contr asset: 750000

Could you, please, suggest which one is the correct calculation?