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F7: How to computer costs to date and foreseeable (expect) loss in SOPL?(Grumpy contract,Revenue chapter)

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F7: How to computer costs to date and foreseeable (expect) loss in SOPL?(Grumpy contract,Revenue chapter)

Hi, guys. When I exercise Revision Kit (BPP) I'm so confused by that:

Study Text (P.100) suggest that cost of sales in SOPL is a balance figure and it includes two parts which are costs to date and foreseeable(expect) loss. So if question just ask cost of sales in SOPL that's the balance figure, there's no problem. But the question ask for costs to date and foreseeable (expect) loss in SOPL (Revision Kit P.23, P.133). So according to Study Text the expenses (costs to date) should be the total costs of incurred costs and estimated costs to completion multiplying complete %. So how come the answer(Revision Kit P.133) only shows incurred costs' figures in that expenses column of SOPL?

Therefore, here's my question: how to determine whether the expenses should be multiplied by complete % or just use incurred costs when the question ask we to write down cost of sales separately into two parts in grumpy contract?

I hope you can help me to find which part I understand wrongly. You can E-mail me or reply this in community if you feel free, I will be so appreciated.

August 2nd 2015 AN ACCA USER 140 Points

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