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Hi sir,
I just finished listening to part two of your lecture on construction constract. The amt in working two, which you said is amt due from customer or could be considered (wip), and w3 which is receivable. In the soffp which, if we are to account for w3 as Receivable in current asset, how then will we account for wk2. in the sofp.?secondly some where at the end of the lecture you said in the exams wk3 might not be required, if the question asked of Amount receivable, what fiqure are we going to us?
Thanks my soul
As a current asset! It’s the equivalent of unbilled work in progress. I imagine that e common sense way to deal with both of these current assets (the receivable and the unveiled work in progress) is to have a single figure in the sofp with a detailed analysis in the notes to the financial statements
In past examination questions on this topic it has invariably been the case that amounts invoiced and amounts received are the same figure so there is no receivable at the year end
Ok?
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