roverfanclub

[roverfanclub]

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I get $80k as well. $2MM contract price * $1MM total estimated costs/ 24 months = $83k –> $80k.

[roverfanclub]

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Just for the sake of debate:

You are correct – the costs are reasonably estimated. However all other criteria are also met: revenue is reliably measured @$2MM and stage of completion can be estimated each month reliably as the costs, since they are expected to be incurred evenly. Both IAS 18 & IAS 11 would require the revenue to be recognized using % of completion method. 

If these criteria were not met, the method of deferring all profit until completion would be appropriate. 

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