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11108


Expected Contract Loss

ias 11-pr22
if it is probable that (1) > (2),
recognise expected loss, as an expense, immediately
(1) total contract costs
(2) total contract revenue

U.S. GAAP
ARB 45-pr6, 11
asc 605-35-25-46

if total contract is expected to have a loss,
a provision for the entire contract loss is made
when they become evident

under both
(1) percentage of completion method
and
(2) completed contract method
 

   
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