Mackenzie Construction Services Ltd. has entered into a contract to construct an office building for Designers Corporation. Mackenzie prepares financial statements in accordance with IFRS. Explain how Mackenzie should recognize revenue under the earnings approach in each of the following scenarios:
(a) Designers Corp. has control over the asset being constructed and can make major structural changes during its construction.
(b) Designers Corp. does not have control over the asset being constructed and title only passes at the end of the contract.