Page 447 - F2 Integrated Workbook STUDENT 2019

Answers

Example 7.9

Nim statement of profit or loss for the year ended 31 December 20X4
$m

Revenue (30 × 66.7%(W2)) 20
Cost of sales (21 × 66.7%(W2)) (14)

———
Gross profit 6

———

Nim statement of financial position 31 December 20X4

$m
Current assets
Contract asset (W3) 8

———

Workings

(W1) Contract profit

$m $m
Contract price 30

Costs to date 14
Costs to complete 7

——
(21)

——
Contract profit 9

——

(W2) Stage of completion
Cost basis: cost to date/total cost 14/21 66.7%

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