A company has entered a construction contract on 1st January 2017. The contract will take 2 years to complete, and the final contract price is OMR 2,000,000. At the end of first year 2017 the company incurred a cost of OMR 1,200,000, It is estimated that a further cost of OMR 300,000 will be incurred in the year 2018 to complete the contract. What is the amount of contract asset to be recognized in the statement of financial position as on the 31st of December 2017? Use input method to calculate the progress towards completion. O a. OMR 1,600,000. O b. OMR 2,000,000. O c. OMR 500,000. O d. OMR 1,200,000.

A company has entered a construction contract on 1st January 2017. The contract will take 2 years to complete, and the final contract price is OMR 2,000,000. At the end of first year 2017 the company incurred a cost of OMR 1,200,000, It is estimated that a further cost of OMR 300,000 will be incurred in the year 2018 to complete the contract. What is the amount of contract asset to be recognized in the statement of financial position as on the 31st of December 2017? Use input method to calculate the progress towards completion. O a. OMR 1,600,000. O b. OMR 2,000,000. O c. OMR 500,000. O d. OMR 1,200,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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