IAS11 – Construction contracts (Example 5) Open tuition materials

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September 13, 2011 at 9:52 pm #49795
tameablebunchy
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I am having a problem with example 5, I know it says when there is more than one period the amounts are cumulative, but I’m not getting generalize cost recognised can you please offer some explanation.

Thank you.
October 27, 2011 at 12:10 pm #88048
MikeLittle
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From memory, isn’t example 5 where there is a forecast loss over the whole contract? If so, general costs is the balancing figure necessary to result in recognizing in full the forecast loss in the year in which it is first forecast?
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