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In IAS 11 Construction Contracts
I am struggle that there are 3 workings, what is the different “Amounts due from/to Customer” between the working 2 and working 3?
Thank you, sir!
One (working W2) is the equivalent of “Unbilled work in progress” and the other (working W3) is a straight-forward Receivable.
They’re both current assets (probably)
Think of an audit firm that bills its clients every time the chargeable time passes $10,000. Imagine that 3 weeks ago they invoiced the client the latest fee note of $10,000 and that there has been a further $2,000 chargeable time posted on the cost card since then
The client has not yet paid the last fee note for $10,000
On the cost card, there is unbilled work-in-progress of $2,000 and in receivables there is $10,000
They are both “amounts due from customers”, but both are different in nature from each other
OK?
@mikelittle said:
One (working W2) is the equivalent of “Unbilled work in progress” and the other (working W3) is a straight-forward Receivable.They’re both current assets (probably)
Think of an audit firm that bills its clients every time the chargeable time passes $10,000. Imagine that 3 weeks ago they invoiced the client the latest fee note of $10,000 and that there has been a further $2,000 chargeable time posted on the cost card since then
The client has not yet paid the last fee note for $10,000
On the cost card, there is unbilled work-in-progress of $2,000 and in receivables there is $10,000
They are both “amounts due from customers”, but both are different in nature from each other
OK?
Goodday Sir. May i please know from where to study more on IAS15, because apparently my text has IAS18
Thank you
I believe that you mean IFRS 15 Revenue from Contracts with Customers
The free course notes are up to date and the website IASPLUS is also a very useful resource
https://www.google.com/search?client=safari&rls=en&q=IFRS+15&ie=UTF-8&oe=UTF-8
IFRS 15 — Revenue from Contracts with Customers – IAS PlusOK?
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