Neptune entered into an agreement with a customer to construct an asset during theyear. Neptune identified the performance obligation to be satisfied over time.Neptune uses the output method based on work certified compared to the contractprice to recognise the progress towards completion and has completed 30% of thecontract to date. The following information is available regarding the contract:

Contract price $2,500,000
Costs incurred to date $470,000
Estimated costs to complete $630,000
Work certified to date and invoiced $750,000

What is the value of the contract asset to be recorded in Neptune's statement offinancial position?

Answer rating: 100% (QA)

To calculate the value of the contract asset we need to first determine the total revenue that Neptu... View the full answer