Example
of Contract Revenue
The contract revenue is recognized which is expected
to be received by the contract and can be measured reliably. The penalties for
any delay must be deducted from the revenue.
|
Contract
Price
|
120,000
|
|
Due
to financial constraint only 100,000 is expected to released
|
100,000
|
|
ABC
is fine for delayed construction
|
10,000
|
|
|
|
Solution
|
Contract
Price
|
100,000
|
|
Less
: Fine for delayed in construction
|
(10,000)
|
|
Revenue
|
90,000
|
|
|
|
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