Page 198 - F2 Integrated Workbook STUDENT 2019
P. 198
Chapter 7
Example 7.9
On 1 January 20X4 Nim entered into a contract with a customer to construct a
specialised building for an agreed price of $30 million.
At 31 December 20X4, Nim had incurred costs of $14 million and estimated that
costs to complete the contract would amount to a further $7 million. Nim
measures progress towards contract completion using the input method, based
on costs incurred.
At 31 December Nim had received $12 million from the customer.
How should the above contract be reflected in the financial statements of
Nim for the year ended 31 December 20X4?
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