Page 204 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 10

Step (2) Determine the stage of completion of the contract

Two methods exist to determine stage of completion:

 cost basis

 work certified basis.

The exam question will inform you of which method is relevant for
your scenario.

Stage of

completion

Work certified
Cost basis basis

Costs incurred to date Work certified to date

––––––––––––––––––––– × 100 –––––––––––––––––––––– × 100
Total costs for the contract Total revenue for the contract

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