Entity A is a famous builder listed in Hong Kong for many years. It started a...

Transcribed Image Text:

Entity A is a famous builder listed in Hong Kong for many years. It started a three-year contract to build a new factory building on 1 April 2020. The contract had a fixed contract price of $100,000,000. The entity will satisfy the performance obligation over time. The entity incurred costs to 31 March 2021 of $74,500,000 and estimated that a further $32,500,000 would need to be spent to complete the contract. The entity measures the progress of contracts using work completed compared to the contract price. On 31 March 2021, a surveyor valued the work completed to date at $66,000,000. REQUIRED: Measure the contract revenue and the contract cost in the Statement of Profit or Loss for the year ended 31 March 2021 respectively. ANSWER: Contract revenue = $ Contract cost = $ Entity A is a famous builder listed in Hong Kong for many years. It started a three-year contract to build a new factory building on 1 April 2020. The contract had a fixed contract price of $100,000,000. The entity will satisfy the performance obligation over time. The entity incurred costs to 31 March 2021 of $74,500,000 and estimated that a further $32,500,000 would need to be spent to complete the contract. The entity measures the progress of contracts using work completed compared to the contract price. On 31 March 2021, a surveyor valued the work completed to date at $66,000,000. REQUIRED: Measure the contract revenue and the contract cost in the Statement of Profit or Loss for the year ended 31 March 2021 respectively. ANSWER: Contract revenue = $ Contract cost = $

Answer rating: 100% (QA)

Contract Revenue 66000000 Contract Cost 73000000 As the Entity measures the progress of contr... View the full answer