Reference no: EM132779894

On July 1, 20x1, Contractor Co. enters into a contract with a customer for the construction of a building. At contract inception, Contractor Co. assesses the contract in accordance with the principles of PFRS 15 and concludes that it has a single performance obligation that is satisfied over time. Contractor Co. then determines that the appropriate measure of its progress on the contract is input method based on costs incurred.

Information on the contract is shown below:

Contract price 600,000
Contract costs incurred during 20x1 120,000
Estimated remaining costs as of Dec. 31, 20x1 240,000
Billings to the customer during 20x1 180,000
Collections on billings during 20x1 60,000

Problem 1: What amounts are presented in Contractor Co's. statement of financial position under List A: Traditional accounting; and List B: PFRS 15?

a. Gross amount due from (to) cust. - 20,000 Contract asset(liability) - (20,000)
b. Gross amount due from (to) cust. - (40,000) Contract asset(liability) - (40,000)
c. Gross amount due from (to) cust. - 20,000 Contract asset(liability) - 20,000
d. Gross amount due from (to) cust. - (20,000) Contract asset(liability) - (20,000)