Revenue from contract - expected loss

Dear Sir, Below is the question: Springthorpe entered into a three-year contract on 1 January 20X2 to build a factory. This is a contract where performance obligations are satisfied over time. The percentage of performance obligations satisfied is measured according to certificates issued by a surveyor. The contract price was $12 million. At 31 December 20X2 details of the contract were as follows. $m Costs to date 6 Estimated costs to complete 9 Amounts invoiced 4 Certified complete 40% What amount should appear in the statement of financial position of Springthorpe as at 31 December 20X2 as contract assets/liabilities in respect of this contract? A $1 million contract liability B $2 million contract liability C $1 million contract asset D $2 million contract asset Here is the solution I suggested: Solution (1): Solution (2): W1: W1: $m $m Sales (1.2m x 40%) 4.8 Sales 6.0 Cost (Balancing figure) (7.8) Cost (Balancing figure) (9.0) Loss (3.0) Loss (3.0) W2 : (Same for both solutions): $m Cost to date 6.0 P/(L) (3.0) 3.0 Amount invoiced (4.0) Contract liability (1.0) Although the answer is the same for both solutions, may i know which W1 should I adopt if expected loss is arisen for the period. Thank you. Laurence Hew