a.Rattan commenced a contract to buildan asset for a customer in the yearended 30 September 20X4. Thecontract price was agreed at £1.5million, and the total expected costs ofthe contract are £800,000. Rattan willsatisfy the performance obligationsover time.The following figures are relevant inrelation to this contract for the yearended 30 September:b.C.Costs incurred todate.Work certified todate£320,000Question 10Select one:Rattan recognises progress on thebasis of work certified compared tocontract price.What should Rattan include in itsstatement of profit or loss for the yearended 30 September 20X5 for cost ofsales in respect of the contract inaccordance with IFRS 15 'Revenuefrom Contracts with Customers'?£560,000d.20X4 20X5£'000 £'000£250,000325 575450 1,050£240,000

The cost of each contract is computed individually and a different account is opened for each…

a. Rattan commenced a contract to build an asset for a customer in the year ended 30 September 20X4. The contract price was agreed at £1.5 million, and the total expected costs of the contract are £800,000. Rattan will satisfy the performance obligations over time. The following figures are relevant in relation to this contract for the year ended 30 September: C. Costs incurred to date Work certified to date b. £320,000 Rattan recognises progress on the basis of work certified compared to contract price. Question 10Select one: What should Rattan include in its statement of profit or loss for the year ended 30 September 20X5 for cost of sales in respect of the contract in accordance with IFRS 15 'Revenue from Contracts with Customers'? £560,000 d. 20X4 20X5 £'000 £'000 £250,000 325 575 450 1,050 £240,000

a. Rattan commenced a contract to build an asset for a customer in the year ended 30 September 20X4. The contract price was agreed at £1.5 million, and the total expected costs of the contract are £800,000. Rattan will satisfy the performance obligations over time. The following figures are relevant in relation to this contract for the year ended 30 September: C. Costs incurred to date Work certified to date b. £320,000 Rattan recognises progress on the basis of work certified compared to contract price. Question 10Select one: What should Rattan include in its statement of profit or loss for the year ended 30 September 20X5 for cost of sales in respect of the contract in accordance with IFRS 15 'Revenue from Contracts with Customers'? £560,000 d. 20X4 20X5 £'000 £'000 £250,000 325 575 450 1,050 £240,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 16RE

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