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A company commenced work on the construction of a significant asset for one of its
customers on 1 May 20X5. Construction is scheduled to run for two years and the
total contract price is $5m.
At 31 December 20X5, the following details are obtained in relation to the contract:• The percentage complete was 50%.
• Amounts invoiced to the customer totaled $1.7m.
• Amounts received from the customer totaled $0.8m.What is the total amount that should be included in the statement of financial
position as at 31 December 20X5 as a contract asset or contract liability?ANSWER IS 2.5m -1.7m= 800000
my question is why isn’t it 2.5m-800000=1.7m
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