Page 197 - F2 Integrated Workbook STUDENT 2019
P. 197
Revenue from contracts with customers
Example 7.8
Mane builds oil rigs for companies operating in the oil industry. The rigs are
specialised and have no alternative use.
The entity has three contracts in process at the year-end 30 April 20X1:
A B C
$000 $000 $000
Contract price 450 378 900
Work certified to date 338 252 180
Costs incurred to date 346 421 198
Estimated costs to complete 43 151 unknown
Progress billings 324 202 144
Required:
Prepare extracts from the financial statements for each of the three
projects, assuming that revenues and profits are recognised on the output
basis.
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