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cma_Conceptual_Frame_Work_For_Financial_Reporting

Acchousescadayahoolcom 0502265272 0105030092

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Unformatted text preview: ool.com-0502265272 0105030092 : WWW.AHSCADA.COM022622173 022622168 1016448872 : 0124059666 034851600 034865655 : – % &'( ) ! , $- ./ : *+ 35 ! " # # $ : :, $- 5 Accounting Accounting House House www.jpspublished on www.jps-dir.com The percentage that costs incurred bear to total estimated cost is applied to the total revenue or the estimated total gross profit on the contract in arriving at the revenue or the gross profit amount to be recognized to date Estimated total revenue ( or gross Percent complet* revenue ( or gross = profit )to be Profit ) recognized to date To find the amount of revenue and gross profit recognized each period we would need to subtract total revenue or gross profit recognized in prior period revenue ( or gross revenue ( or gross current period profit )to be profit ) recognized = revenue ( or recognized to date in prior period ( gross profit ) Example. A contractor has a contract to build a bridge that will take 3 years to complete the contract price is $2000000 the contractor expects total costs to be $ 1200000 the following information applies to the costs incurred and expected to be incurred during the 3 years Year 1 year 2 year 3 Cost incurred during each year $300000 $600000 $550000 Costs expected in the future $900000 $600000 0 1) by the end of the first year. The contracto...
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