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ACCA F7 IAS 11 Construction Contracts Example 3
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Can you please give us an example on how to apply IAS 11.28 and IAS 11.34? Thanks a lot!!
where did you get loss of $50? in Example 4?
This thread is headed Example 3. Now you’re asking about example 4!
How do I arrive at a loss?
Is it not simply “contract value minus total costs of the contract both those already incurred and those that are still to be incurred”?
sorry silly question sir
Hi
I want to ask that the calculation part is done, but what about the posting of these amounts?
Where we have to post the answers we have calculated?
And this will be come in Trial Balance under notes?
Thanks
You’re not going to have to post any entries
What you will possibly need to do is add the figures calculated for revenue recognised and cost of sales recognised into the statement of profit or loss and adjust receivables (and, if appropriate, payables) for amounts due from customers
HI Mike,
Just finished the “Calculation of Construction Contract Profits” lectures and notes, everything makes seems fine but little confused about the double entry for working 2, the first amount due/owed to customer. YOu said show it separately for AR…. which heading and where would you show it?
can you please help?
thanks
Why w1 changed for example 4?
Dear Sir,
If we had expected the loss by forecasting future cost against revenue. In practical, how does this “balancing “cost figure should be shown in statement of profit loss? such as journal etc.
Thank you
Regards,
Dr Construction Cost in the statement of profit or loss
Cr Construction Contract Account
Hi, I cannot find the lecture for Chapter 14- IAS 36. The website takes me to chapter 15 right after chapter 13.
Why have you posted this twice? There really is no need 馃檨
If you want a reply from me, then post on the ask the tutor page
If you want a reply from the general populace, then post in the general forum
But, please, do not post in both places
I’m sorry 馃檪 I wasn’t sure where I’ll get the answer from.
Thank you.
You’ll always get an answer if you post on Ask the Tutor
You may never get an answer if you post on the general forum – most do, but there’s no guarantee
Many thanks for your help, Mike! At long last I understand how to answer questions on construction contracts 馃檪
You’re welcome
Hello Sir
I don’t understand why in example, cost is (300 000 + 250 000) * 65%= 357 500
I dont understand why is 375 000 instead.
ok got it
Had the same concern! Total cost for contract (estimated) 300+250>500 (revenue). So we already now that there is a loss of 50K.
Therefore (375) is a balancing figure.
Good morning Sir,
i am really struggling to understand how you got to your figures within Exampe 5… Mainly the costs in year two of 拢750,000. Am i missing something?
Many thanks, Chris.
Yes, you certainly are missing something but, before I answer you, I want to raise two points:
1 – this really would be better addressed to me on the ask the tutor page because I rarely look at the recent post section
2 – have you looked at previous comments under this lecture?
Please look at previous posts and, if you’re still stuck, post again
HI Mike,
Just finished the “Calculation of Construction Contract Profits” lectures and notes, everything makes seems fine but little confused about the double entry for working 2, the first amount due/owed to customer. YOu said show it separately for AR…. which heading and where would you show it?
can you please help?
thanks
“show it separately for AR” – that says it all!
dear Sir, What are the ways of calculating the stage of completion?