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Henley Co entered into a $10 million contract to build an asset for a customer on 1 April 20X4. The contract is expected to take 2 years and a surveyor has assessed the value of work done as $4 million. The contract will cost $8 million and Henley Co has spent $4 million to date. Henley Co measures progress towards completion using an output method, comparing the work certified to date to the total contract price.
What profit should Henley Co recognise for the year ending 31 December 20X4?
$_________’000Hi,
I’m not here to just answer questions for you without having seen you attempt it first. If you try to answer it then I’ll let you know where you are going wrong.
I won’t be there in the exam to help you so it’s useful to get used to that situation now so that you’ll be ready for the exam.
Thanks
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