Entity A started a contract on 1 November 2018. The contract was scheduled to run for two years and has a sales value of $5,000,000. Entity A will satisfy the performance obligation over time.

On 31 October 2019, the following details were obtained from Entity As records:

• Costs incurred to date $1,600,000
• Estimated costs to completion $1,800,000
• Progress at 31 October 2019 45%

REQUIRED:

Measure the contract revenue and contract cost in its Statement of Profit or Loss for the year ended 31 October 2019.

ANSWER:

Contract revenue = $Blank 1

Contract cost = $Blank 2