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Dear Mike,
The following information relates to 31 March 2009 of a contract where performance obligations are satisfied over time:
Contract price 900 000
at 31 March:cost to date: 720 000
Estimated cost 480 000
invoiced 400 000
% complete 60%My questions is why the 60% is not used in the solution? 300 loss*60%=180 then deduct what was already invoiced?
Solution:
cost to date: 720 000
less loss: (300)
less billing: (400)
due 20Thanks very much.
Have a lovely weekend!
Kind regards,
KatalinPage 74 of the F7 free course notes available on this site explains it all … together with an example
Page 75 also has a comprehensive example of a similar situation
Work through that example and then, if you still have a problem, post again
OK?
Good morning Mike,
Thanks very much. It is loud and clear 🙂
I am only on the 46th page with the OT notes. Probably should have gone through your notes before the study text book as it is much easier to understand.Have a lovely Sunday!
Kind regards,
Katalin
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