How each contract would be reflected in the statement

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Reference no: EM132692674

Trontacc is a company whose activities are in the field of major construction projects. During the year ended 30 September 2017, it enters into three separate contracts, each with a fixed contract price of $1,000,000. These are contracts where performance obligations are satisfied over time and Trontacc Co has an enforceable right to payment for performance completed to date. The following information relates to these contracts at 30 September 2017:

Aspire Bigga Construct

Payments on account (including amounts

Receivable) 540 475 400

Cost incurred to date 500 550 320

Estimate costs to complete the contract 300 550 580

Estimate percentage of work completed 60% 50% 35%

Required:

Problem a) Show how each contract would be reflected in the statement of financial position of Trontacc at 30 September 2017 under IFRS 15 Revenue from Contracts with Customers

Problem b) Show how each contract would be reflected in the statement of profit or loss of Trontacc for the year ended 30 September 2017 under IFRS 15.

Reference no: EM132692674

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