What is the value of the contract asset to be recorded

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Question - Neptune entered into an agreement with a customer to construct an asset during the year. Neptune identified the performance obligation to be satisfied over time. Neptune uses the output method based on work certified compared to the contract price to recognise the progress towards completion and has completed 30% of the contract to date. The following information is available regarding the contract:

$

Contract price 2,500,000

Costs incurred to date 470,000

Estimated costs to complete 630,000

Work certified to date and invoiced 750,000

Required - What is the value of the contract asset to be recorded in Neptune's statement of financial position?

Reference no: EM133145282

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