I was studying on FRS 11 and got confused with the answers provided in Beetie (Pilot Paper qn 5) and Torrent (Paper 2.5 Jun 2006 Q5a).
The first working is to calculate the expected profit / (loss). To do that, we got to take the Contract Price less Total Cost. I got till tat part.
However, what consists of the total cost and also do we take estimated costs at start of contract or estimated costs at the end of the accounting period?
Thanks in advance.