Duke Ltd has a contract with a customer ongoing at the end of the financial year, 31 December 2020. Details of this contract are as follows: Total contract price £50,000 Cost incurred to date £12,000 Anticipated future costs £28,000 Progress billing - Agreed price for the component completed £14,000 Progress is measured using the output method under IFRS 15 Revenue from Contracts with Customers. What amount of revenue is able to be recognised for the year ended 31 December 2020? a) £15,000 b) £50,000 c) £21,000 d) £14,000

Duke Ltd has a contract with a customer ongoing at the end of the financial year, 31 December 2020. Details of this contract are as follows: Total contract price £50,000 Cost incurred to date £12,000 Anticipated future costs £28,000 Progress billing - Agreed price for the component completed £14,000 Progress is measured using the output method under IFRS 15 Revenue from Contracts with Customers. What amount of revenue is able to be recognised for the year ended 31 December 2020? a) £15,000 b) £50,000 c) £21,000 d) £14,000

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 26E

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