Percentage of Completion Method: Losses Scenarios

[@elizabethhugeback-braddock1647]

This is so helpful! Thank you for helping understand how to adjust the costs for the year where the loss occurred!

[@AccountingLectures]

Glad it was helpful! Thank You. For more, visit my website at: www.farhatlectures.com

[@amydiakhate843]

I wished Becker did a good job like you did at explaining this section. This was super helpful. Thank you Farhat!

[@AccountingLectures]

Great. Take a look my Becker FAr supplemental course: farhatlectures.com/courses/2024-far-becker-supplemental-course/ 1 day free trial available.

[@OS-xx6nq]

This video has almost 5,000 views and only 57 likes. Be grateful and hit the Like button to show your appreciation for the great job done explaining the POC concept.

[@AjaySingh-nh1yk]

Hi Farhat. It's really wonderful. Just small clarification. In 2nd year total estimated cost should be 450 plus 181 I.e 631ke whereas you have considered 490 plus 181. Why.

[@crocodilly]

Hi, is this method of recognising onerous contracts still applicable under the current IFRS15 and ias37 climate? thanks!

[@michaeljeter502]

Can I amend my client's business return for prior years to reflect this method as the previous accountant filed a straight cash = revenue method?

[@ShahidAli-hm8jp]

Thanks for passing the understanding about construction. But i bit confuse and need your few seconds to clear my doubt. Your B/s entries are clear . ur P/l entries are also clear to me. But i bit confuse on the following 1- at Buying of Material Inventory of Building Material -Dr $10 TO Cash/AP- Cr.$10 2-Once Inventory team issue Mat to Project COS - Dr $3 TO Inventory -Cr $3 Now as per concept, we have to pass CIP entry into B/s for the year/Month end CIP -Dr (BS) $3 TO Bldg Mat Expense/Cash/AP- CR(PL) $3 My question is if we will switch our all value of COS $3(Cr) into CIP (Dr.) how our P&L works (Sales-cost=Profit) So i am confuse about Cr. part. how and why Cr part will be consider/judge as Material Expense, Cash or Bank/ AP I will really appreciate to clear this point with thanks I hope you will understand well

[@nivasgowda6105]

Hi Farhat, Thanks for your Amazing videos, Just had one doubt with respect to the 3rd scenario here, what if the cost incurred for the 3rd year was 183,000 instaed of 181,000. ? How do we recognise the additional 2000 expense