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Hi tutor I wanted to know if The first adjustment of Dec 2013 paper, Q no 2 is still valid for the dec exams since IAS 11 is no longer there
thanksPlease don’t make me search through finding the December 2013 exam!
If the adjustment is made in accordance with IAS 11, then, no, it is no longer relevant
But if the adjustment is merely a calculation of attributable revenue, attributable costs and therefore attributable profits then, yes, it probably is still relevant
Those figures have to be calculated somehow whether the incident is before, during or after the existence of IAS 11
Will that do or must I really find December 2013?
Sorry. here is the adjustment I was asking about. Is it relevant?
(i) The balance on the construction contract is made up of the following items:
Cost incurred to date $14 million
Value of contract billed (work certified) $10 millionThe contract commenced on 1 October 2012 and is for a fixed price of $25 million. The costs to complete the contract at 30 September 2013 are estimated at $6 million. Moby’s policy is to accrue profits on construction contracts based on a stage of completion given by the work certified as a percentage of the contract price.
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