Springthorpe entered a three-year contract on 1 January 20X2 to build a factory. This is a contract where performance obligations are satisfied over time. The percentage of performance obligations satisfied is measured according to certificates issued by a surveyor. The contract price was $20 million. At 31 December 20X2 details of the contract were as follows.

$m
Costs to date	9
Estimated costs to complete	5
Amounts invoiced	4
Valuation certified complete work	4.5

Required:

Explain, with a journal entry, how to account for the above transaction in accordance to IFRS 15: Revenue from contract with the customer and prepare extracted financial statements for the year ended 31 December 20X2

Answer rating: 100% (QA)

Solution As per IFRS 15 Revenue from Contract from customers Particulars in millions Contract ... View the full answer