This is a variation of the Problem 5-5 modified to focus on IFRS.

In problem 5-5, In 2011, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2013. Information related to the contract is as follows:

Westgate uses the percentage-of-completion method of accounting for long-term construction contracts.

Required:
Complete the requirements of Problem 5-5 assuming that Westgate Construction reports under IFRS and concludes that the percentage-of-completion method is notappropriate.

Transcribed Image Text:

2011 2012 2013 2400000 36000005 2200000 Cost incurred during the year Estimated costs to complete as of year-end 56,00,000 20,00,000 Billings during the year Cash collections during the year 20,00,00040,00,00040,00,000 18,00,000 36,00,00046,00,000