Question: - - Work on both the Tees contract and the Wear contract commenced during the financial year ended 31 October 2010. The Tyne contract commenced

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Work on both the Tees contract and the Wear contract commenced during the financial year ended 31 October 2010. The Tyne contract commenced during the financial year ended 31 October 2009.

Klinibild plc accounts for its contracts in accordance with IAS11 Construction Contracts using a revenue approach to calculate the percentage of work completed. Revenue is to be based on independent surveyors' certificates.

All of the amounts invoiced to the contractees are expected to be collected and no allowance is to be made for doubtful debts.

Required:

(a) Calculate the estimated total profit or loss on each of the three contracts.

(b) Calculate the profit or loss to date on each of the three contracts.

(c) Calculate the figures to be reported in Klinibild plc's statement of comprehensive income for the year ended 31 October 2010 for contract revenue, contract costs, and profit or loss for each of the three contracts.

(d) Calculate the figures which will be reported in Klinibild plc's statement of financial position as at 31 October 2010 for each of the three contracts.

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