- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
The question is asking for the amount reported as contract asset. The answer is deduction from the whole amount invoiced despite the scenario says that they have received the whole amount invoiced. Why?
I thought we should deduct only the outstanding amount of invoices after deducting the receipts.Am I wrong.
Hi,
To calculate the contract asset we add together the costs incurred to date (1,600) and the profit to date (360). We then deduct the amounts invoiced to date (1,800) and this then gives the answer (160 = B).
Have a look at page 71 of the class notes and work through example 7, as this should help.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.