Question: A company has a contract which commenced in 2014. The following are details from the yearended 31 December 2014. (All figures in $m) Total contract

A company has a contract which commenced in 2014. The following are details from the yearended 31 December 2014.

(All figures in $m)

Total contract value = 45.0

Costs incurred to date = 35.0

Estimated costs to completion = 2.5

Work certified as completed in the year = 13.0

Stage of completion (at 31.12.2014) = 70%

Profit recognized in 2013 = 4.5

Required:Show how this contract would be dealt with in the Income Statement for the year ended 31December 2014.

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