Reference no: EM132582216

On 1 October 20X0 Monna entered into a construction contract that was expected to take 27 months and therefore be completed on 31 December 20X2. Details of the contract are:

Agreed contract price                                         RM12,500

Estimated total cost of contract (excluding plant)    RM 5,500

Plant for use on the contract was purchased on 1 January 20X1 (three months into the contract as it was not required at the start) at a cost of $8 million. The plant has a four-year life and after two years, when the contract is complete, it will be transferred to another contract at its carrying amount. Annual depreciation is calculated using the straight-line method (assuming a nil residual value) and charged to the contract on a monthly basis at 1/12 of the annual charge.

The correctly reported profit or loss results for the contract for the year ended 31 March 20X1 were:

RM'000

Revenue recognized 3,500

Contract expenses recognized (2,660)

Profit recognized 840

Details of the progress of the contract at 31 March 20X2 are:

RM'000

Contract costs incurred to date (excluding depreciation) 4,800

Agreed value of work completed and billed to date 8,125

Total cash received to date (payments on account) 7,725

The percentage of completion is calculated as the agreed value of work completed as a percentage of the agreed contract price.

Required:

Question 1: Prepare extracts of the statement of comprehensive income for the year ended 31 March 20x2.

Question 2: Prepare extracts of the statement of financial position as at 31 March 20x2. (Show all necessary workings)