When the Outcome of a Construction Contract Can Be Estimated

question 60

True/False

When the outcome of a construction contract can be estimated reliably,contract revenue and contract costs associated with the construction contract shall be recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date.

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Definitions:

Ions

Atoms or molecules that have lost or gained one or more electrons, thus acquiring an electric charge.

Respective Charges

The specific electrical charges on particles or objects, usually defined as positive or negative, which determine their electromagnetic interactions.

Solvent

A substance, typically a liquid, capable of dissolving other substances to form a solution.

Water

A colorless, tasteless, and odorless substance essential for most plant and animal life and the most widely used solvent.