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If at 31 december 20X8 the company had completed only 10% of the contract for costs of 400000 and felt that it was to early to measure the outcome of the performance obligation but it did expect to be able to recover the costs incurred to date. What amount if any could the company have recognised as revenue. Total contract value 5000000
I don’t understand what the question is asking. Is 10% work certified to date. What I think the revenue recognised to date is 500000 i.e. total contract value multiply by 10%.If they can only recover the costs and cannot yet measure the outcome then they would measure revenue at what they expect to recover, i.e. the costs incurred.
If they would not measure revenue at what they expect to recover i.e. the costs incurred then at what will the revenue be measured and why
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