What is a construction contract? And who usually signs a contract for a construction project?
Q: Explain Leasing Commissions and Related Costs?
A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…
Q: t contract inception, PFRS 15 requires an entity to determine how the performance obligations…
A: Contract is a legal document or agreement between the two parties with their mutual obligation.
Q: Based on the requirements and guidance of IFRS 15, one of the following is not considered part of…
A: Under the contract costing, there is an agreement made between two parties in respect of performing…
Q: The primary issue in the accounting for construction contracts is the determination of the…
A: Construction contract: It is the contract between the parties that include all details of…
Q: What is physical life of project?
A: Physical life of a project is the duration of time in which the project has been fully used and…
Q: What is a “grant date”?
A: A stock option is a contract that allows its holder to either buy or sell a certain number of shares…
Q: What is a land contract?
A: Land contract: A land contract is a course of action between a consumer and a dealer that applies to…
Q: Which of the following costs shall from part of contract costs of long-term construction contract?…
A: Following is the answer to the given question
Q: Explain the term Land Contracts?
A: Land contracts: A land contract is an arrangement of vendor financing. It is alike to a loan, but…
Q: Explain why an organization should buy or lease when purchasing equipment.
A: Leasing involves the two parties, a lessee and lessor ,Whereas purchasing involves a buyer and…
Q: Determine Lease Revenue?
A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…
Q: Explain the accounting for contract modifications.
A: Contract modification may occur when any addition, change or cancellation of specific terms and…
Q: when evaluating a tenant and a lease proposal, the owner considers it?
A: Lease is an agreement where landlord and tenant agrees to certain terms and conditions. In this…
Q: For what reasons should the percentage-of-completionmethod be used over the completed-contract…
A: Completed contract method: In this method the revenue and profit are recognized only after the…
Q: In accounting for a long-term construction contract using the percentage of completion method, the…
A: Percentage of completion method requires reporting of revenue and expenses period by period basis.
Q: Define the term Contract Modifications.
A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…
Q: Define the contract liabilities.
A: Liability: Liabilities include the claims of the creditors on the assets of the business. The…
Q: What is the Impact of Engineering Projects on Financial Statement?
A: Impacts of engineering projects on financial statements: Engineers might understand the environment…
Q: What is the difference between the assignment of a take-out commitment to the construction lender…
A: Take-out commitment is an agreement between lender and borrower in which lender provides guarantee…
Q: What are the different types of future contracts? Explain each.
A: Future contract is referred to as the contract, which is made between the two parties where the…
Q: The requirement of a real estate property manager to act in the best interests of the landlord when…
A: Due process refers to the legal requirement that the state respect all legal rights owed to a…
Q: When the outcome of a construction contract cannot be estimated reliably, how shall contract revenue…
A: when the outcome of a construction contract can be estimated reliably, contract revenue and contract…
Q: When a bidder submits a proposal, does that act complete a contract? Explain.
A: For a stated cost, it is necessary to submit a bid to do the venture. Even the staff and machinery…
Q: What are the features of Rent premiums for industrial/warehouse properties that might be added for…
A: Introduction: The given question is based on the notion of rent discounting in real estate finance.…
Q: Define contract laibilities.
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: When outcome of a construction contract is estimated reliably, contract revenue and contract costs…
A: Solution: As per IAS 11, "when the outcome of a construction contract can be estimated reliably,…
Q: Determine whether a contract exists, and whether some frequently encounteredfeatures of contracts…
A: A contract exists when it has commercial substance and all parties to the contract are committed to…
Q: Identify the best and worst types of contract on the basis of payment
A: Contract is referred to as the legal bind of an agreement, which used to define as well as govern…
Q: What two methods are identified in the Codification as appropriate in accounting for long-term…
A: Long term Construction Contract Construction contract are in different type in accordance with need…
Q: In light of your study of the main conditions mentioned in the definition, mention why are or are…
A: An asset is a resource with the financial worth that an individual, enterprise, or nation possesses…
Q: A binding contract is created when a contractor submits a bid for a project O True O False
A: A binding contract is a contract where the parties to the contract are legally enforceable and the…
Q: Which of the following shall be excluded in the contract costs of a construction contract? * A.…
A: Contract costs should comprise:(a) costs that relate directly to the specific contract;(b) costs…
Q: what is example of payroll report for project?
A: A payroll report is a document prepared and processed at every month end which clearly shows the…
Q: What is leasing? Explain the process of leasing’s Underwriting process of Tenants.
A: Lease can be defined as a right to use equipment or capital goods on payment of periodical amount…
Q: What are the two basic methods of accounting for long term construction contracts? Indicate the…
A: Explain the two basic methods of accounting for long term construction contracts: The two basic…
Q: Discuss impact of Engineering Projects on Financial Statements?
A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…
Q: Define the term Perpetual Service Life of a project?
A: Perpetual service life means that the project will continue in the same manner that would…
Q: #14 How should the balances of Progress Billings and Construction in Process be shown at reporting…
A: Introduction: Progress billing is a form of invoicing that ensures a consistent payment schedule…
Q: Why should a real estate listing contract be in writing and what are the essential elements of a…
A: Real estate contracts refer to legal aggreement between different parties. It is enforceable by law…
Q: Why is the practice of “holdbacks” used? Who is involved in this practice? How does it affect…
A: Development of project: Project creation can be characterised as the process of initiating,…
Q: Discuss the contract according to its enforceability?
A: In basic terms, a contract implies when two gatherings put into composing an understanding that…
Q: What amount of RGP should be reported for the current year if the percentage of completion method is…
A: Answered:
Q: eives a contract to build a building to the performance of the contract is sum over
A: Given: To calculate the contract revenue amount in 2019 as,
Q: how long-term construction contract are accounted for and some of the issues that are faced for…
A: Long-term construction contract is reported in financial statements is as follows: At the end of…
Q: Discuss the accounting and reporting requirements for leasing contracts with unique characteristics.
A: Given : This question explains about the accounting and reporting requirements for leasing contracts…
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- 1. When outcome of a construction contract is estimated reliably, contract revenue and contract costs associated with the construction contract should be recognized using * A. cost recovery method B. percentage of completion method C.gross profit method D.zero profit method.#14 How should the balances of Progress Billings and Construction in Process be shown at reporting dates prior to the completion of a long-term contract? Question 14 options: a Net balance, as income from construction if credit balance, and loss from construction if debit balance b Progress Billings as deferred income, Construction in Progress as a deferred expense c Progress Billings as income, Construction in Process as inventory d Net balance, as a current asset if debit balance, and current liability if credit balanceWhich of the following shall be excluded in the contract costs of a construction contract? * A. Costs that are directly attributable to contract activity in general and can be allocated to the contract B. Costs that directly relate to the specific contract C. Such other costs as are specifically chargeable to the customer under the terms of the contract D. Selling costs such as advertisement expense or commissions of real estate agents or brokers Percentage of Completion is favored to be used under the following circumstances, except A. Progress Billings is assured of collection B. Contract Price is assured C. Performance obligation can be reliably measured D. Contract Costs can be reliably estimated S1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses.S2: Variable…
- Which of the following costs shall from part of contract costs of long-term construction contract? a. General administration costs for which reimbursement is not specified in the contract b. Research and development costs for which reimbursement is not specified in the contract c. Construction overheads including costs such as the preparation and processing of construction personnel payroll. d. Selling costs such as broker’s commissionWhich statement is true when the outcome of construction contract cannot be estimated reliably? a. Contract costs shall be recognized as an expense in the period when incurred. b. Revenue shall be recognized only to the extent of contract costs incurred that is probable will be recoverable c. All of these statements are true. d. An expected loss on the construction contract shall be recognized as an expense immediately.When it is probable that total contract costs will exceed total contract revenue, how shall it be accounted for? Group of answer choices The expected loss shall be recognized as an expense immediately only when the outcome of a construction contract cannot be estimated reliably. The expected loss shall be recognized as an expense immediately regardless of the certainty or uncertainty of the outcome of a construction contract. The expected loss shall be accounted for based on company’s policy. The expected loss shall be recognized as an expense by reference to the state of completion of the contract activity at the end of the reporting period when the outcome of a construction contract cannot be estimated reliably. PreviousNext
- show proper solution: Long-Term Construction ContractsA presale agreement is said to be equivalent to a take-out commitment. What will the construction lender be concerned about if the developer plans to use such an agreement in lieu of a take-out?What are the two basic methods of accounting for long term construction contracts? Indicate the circumstances that determine when one or the other of these methods should be used.
- Explain the concept of asset financing in Islam. What is the concept of Musharakah? How is it different from Mudharabah? Which one is better and for which type of projects or assets financing it can be used. How diminishing Musharakah does leads to the contract termination?David Mendez Under the percentage-of-completion method, how should the balances of progress billings and construction in process be disclosed in the financial statements prior to the completion of the contract? net, as income from construction if a credit balance, and loss from construction if a debit balance progress billings as deferred income, construction in progress as a deferred expense net, as a current asset if a debit balance, and a current liability if a credit balance progress billings as income, construction in process as inventoryCh. 16 _______ specifies an action that the company agrees to take or a condition the company must abide by. Group of answer choices milking the property marketable claims negative covenant positive covenant