1. Entity A commenced a contract to build a bridge for Entity B in the year ended 30 September 2020. The contract price was agreed at $2,800 million and the total expected costs of the contract have been confirmed as $1,500 million.

   Entity A will satisfy the performance obligation over time.

   The following figures were correctly recognised in the Statement of Profit or Loss for the year ended 30 September 2020:

   • Revenue $1,000 million
   • Cost of Sales $480 million
   • Profit $520 million

   The following figures are also relevant in relation to this contract:

   • 2020 2021
   • Million Million
   • Costs incurred to date $660 $1,020
   • Work certified to date $880 $2,100

   Entity A recognises progress on a work certified basis.

   REQUIRED:

   Measure the contract revenue and contract cost for Entity A in its Statement of Profit or Loss for the year ended 30 September 2021.

   ANSWER:

   Contract revenue = $ Million

   Contract cost = $ Million