Contract asset

This topic has 5 replies, 3 voices, and was last updated 1 year ago by P2-D2.

Viewing 6 posts - 1 through 6 (of 6 total)

Author

Posts
March 12, 2021 at 11:51 am #614276
phuongmore
- Topics: 59
- Replies: 74
Dear Sir, please help me to explain the calculation of contract asset.When contract asset is equal cost to date + profit to date- receivable.When contract asset is equal revenue recognized – amount invoice ?Thank you.
March 13, 2021 at 7:33 am #614326
P2-D2
Keymaster
- Topics: 4
- Replies: 6115
Hi,

Under the current rules it is easiest to record it based on revenue recognised less amount invoiced.

Thanks
March 13, 2021 at 10:10 am #614352
phuongmore
- Topics: 59
- Replies: 74
Dear sir, but 2 ways of calculation will give 2 different results.Which results will be awarded mark?In BPP, there is some questions solution is 1st way, some questions solution is 2nd way.I do not know which way to apply for each case.Please help me to explain.Thank you.
March 17, 2021 at 7:29 pm #614630
P2-D2
Keymaster
- Topics: 4
- Replies: 6115
I’d use the current method of revenue recognised less amount invoiced.
May 5, 2021 at 6:32 am #619696
shehkay
- Topics: 0
- Replies: 1
Hi! is there a video or an article from the FR examining team confirming if this is the method to be used in exams? Because it is really confusing as your videos show the old method too and bpp questions are a mix of old and new method. Which method exactly do we follow
May 6, 2021 at 10:06 am #619843
P2-D2
Keymaster
- Topics: 4
- Replies: 6115
Hi,

I’m not aware of anything but feel free to have a look on their website as that is where it would be.

Thanks
Author

Posts

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.