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lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

17-Jul-20 16:58

17

AS7

"Outcome of the contract cannot be estimated" What does it mean? Does it mean that: the revenue from such cannot be measured?

Answers (1)

ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 11:40

Yes. Nevertheless, it may be probable that the enterprise will recover the contract costs incurred. Therefore, contract revenue is recognised only to the extent of costs incurred that are expected to be recovered.