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Chapter 10

Step (4) Calculate year-end figures for the STATEMENT OF FINANCIAL
POSITION

As per IAS 11 Construction contracts, the statement of financial position will
show GROSS AMOUNTS OWED FROM/TO CUSTOMERS.

Costs incurred to date x
Recognised profits to date x

Recognised losses to date (x)
Amounts billed to customers (x)
––––
Gross amounts owed from/to
customers x/(x)

––––

Amounts owed from customers = asset.

Amounts owed to customers = liability.

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