Homework answers / question archive / Take the same set of facts as described in the previous question, except assume that the increase in material costs has created significant uncertainty for the contract

Take the same set of facts as described in the previous question, except assume that the increase in material costs has created significant uncertainty for the contract

Accounting

Share With

Take the same set of facts as described in the previous question, except assume that the increase in material costs has created significant uncertainty for the contract.

Required:

a. Using the zero-profit method (IFRS), determine the amount of revenue and expense to report each year.

b. Using the completed-contract method (ASPE), determine the amount of revenue and expense to report each year.