- May 17, 2018 at 1:00 pm
Sir assuming we are not given the amount received but amount billed in wk3 , is there any way to calculate the current asset ?
And in wk 1 where can calculate overall profit but in wk2 we do not know the profit to date (progress) but cost to date and amount billed , how do we also calculate the profit to date ? So that we can arrive at the current asset that is the amount due from customer ?
Let’s say Revneue $5m
cost incurred $1.6m
Cost remaining $2.4m
Overall profit = $1m
How do we calculate the progress on the basis amount billed compared to the contract price .
Is ok if I say $1.8m/$5m = 36%
To enable me calculate the current asset that will be reported in the SOPF?
Cost to date $1.6m
Profit to date $360 ( $1m/36%)
Amt invoiced ($1.8)
Due from customer = $160,000?May 17, 2018 at 1:08 pm
“assuming we are not given the amount received but amount billed in wk3 , is there any way to calculate the current asset ”
Not the account receivable – but if you’re not given the necessary information then you can’t do the computation – don’t worry about it
“How do we calculate the progress on the basis amount billed compared to the contract price ”
You can’t – you haven’t been told the amount billed
No! You can’t go re-writing questions like that!
Ig the examiner wants to know the current asset figure for amounts receivable, the examiner will give you all necessary information
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