t contract inception, PFRS 15 requires an entity to determine how the performance obligations identified in the contract will be satisfied. According to PFRS 15, how does an entity satisfy a performance obligation in a long-term construction contract?  over time  at point in time  any time  over time or at point in time

Q: Which of the following statements regarding the recognition of expenses related to long-term…

A: Recognition of expenses in accounting refers to the process of recording and reporting the costs…

Q: 1. In 20x1, Electrified Construction Co. enters into a contract to construct a building for a…

A: SOLUTION-   JOURNAL ENTRIES - A JOURNAL  IS A COMPANY'S OFFICIAL BOOK IN WHICH ALL TRANSACTIONS ARE…

Q: Demonstrate revenue recognition for long-term contracts, both at a point intime when the contract is…

A: Long term contracts usually qualify for revenue recognition over time. We recognise revenue over…

Q: Which of these three characteristics (I, II, and III) are required in order for a promised good or…

A: Promised goods or services will be considered distinct if: When it is capable to being distinct…

Q: Which of the following dictates how the revenue from the sale of production will be distributed:

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Assuming that the total estimated cost to complete the project amounted to P76,500,000, what is the…

A: 1. Formula to calculate % of completion: = (Actual Cost incurred till date / Total  estimated cost…

Q: FAR 32 provides the policies and procedures for contract financing. Explain three primary means of…

A: Contract financing refers to the payment received against contracts. FAR 32 is the part of contract…

Q: When a contract includes an option to buy additional goods or services, when does that option give…

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Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

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Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

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Q: The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal…

A: 1.

Q: Briefly discuss the conceptual foundation for asset and liability recognition in a lease transaction…

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Q: Briefly explain the conditions when a contract modification shall be accounted for as a separate…

A:

Q: The IASB and FASB are collaborating on a joint project to revise accounting standards for leases.…

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Q: agreement at method e-of-completion method ent method

A: The revenue recognition method that is applied to long term contracts is percentage of completion…

Q: operator treats the resurfacing services included in a service concession arrangement as a separate…

A: service concession arrangement where government or any other public sector body contract with the…

Q: What is the difference between the assignment of a take-out commitment to the construction lender…

A: Take-out commitment is an agreement between lender and borrower in which lender provides guarantee…

Q: Summarize the GAAP versus IFRS existing and pending (if any) requirements for accounting for leases.…

A: GAAP is primarily used in the United States, while IFRS is used in over 110 countries around the…

Q: 1. WHAT IS LONG-TERM CONSTRUCTION CONTRACTS? ELABORATE AND GIVE EXAMPLES OF LOCAL CONSTRUCTION…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The term of Final Payment. Effects of Final Payment.

A: A contract is made so that the work can be done legally and both are bond to fulfill their portion…

Q: customer can direct the use of the asset. The asset is explicitly or implicitly identified in the…

A: Identified asset:I An asset whose fair value or market value can be calculated at particular given…

Q: What are the two basic methods of accounting for longtermconstruction contracts? Indicate the…

A:

Q: Is variable consideration included in the calculation of a contract’s transaction price? If so, how…

A:

Q: . An agency purchased a threshing machine c a 2% withholding tax, on account at P250,000, with…

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Q: Explain the doctrine of the indoor management rule in relation to a company entering into a…

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Q: David Mendez Under the percentage-of-completion method, how should the balances of progress billings…

A: Progress Billings as income: Progress billings represent amounts billed to customers for work…

Q: Companies provide information about performance obligations in contracts with customers, including…

A: The question is asking about the type of information that companies provide about performance…

Q: How can a single revenue recognition standard address all the complexities and unique clauses…

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Q: Determine whether a contract exists, and whether some frequently encounteredfeatures of contracts…

A: A contract exists when it has commercial substance and all parties to the contract are committed to…

Q: What two methods are identified in the Codification as appropriate in accounting for long-term…

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Q: Access the FASB’s Codification Research System® at the FASB website (www.fasb.org) and select Basic…

A: Answer for the each of the following items:

Q: Under the new revenue recognition guidance in ASC Topic 606, which of the following statements is…

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Q: Describe five basic elements of a contract based on Contract act 1950

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Q: A binding contract is created when a contractor submits a bid for a project O True O False

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Q: Explain how to account for revenue on a long-term contract over time as opposed to at a point in…

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A:

Q: determine the initial recognition, initial measurement, and subsequent measurement offi nance…

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Q: Describe the conditions when contract assets and liabilitiesare recognized and presented in…

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Q: What must a contract include for the contract to exist for purposes of revenue recognition?

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.