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AS-7
Accountancy
in the illustration (attached below) ,why the contract price was credited with 90+9. ? In video 4 AS -7 ,in the same illustration,the contract price was credited with reimbursable cost only(90000)
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The solution in the study material is incorrect When the outcome of a construction contract cannot be estimated reliably: (a) revenue should be recognised only to the extent of contract costs incurred of which recovery is probable; and (b) contract costs should be recognised as an expense in the period in which they are incurred Here is the correct solution attached
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