Financial statement Analysis

total revenue from a project is say 10 Mio, the project is spread over 2-3 years. So cumulative revenue over 2-3 years is 10 mio So based on construction, i.e % of completion total project revenues and costs are recognized. Say project is 50% complete in yr 1 then 50% cost and revenue are recognized. In year 2 if completion rate is 75% then cumulative revenue and cost for year 2 is 75% If one has to get revenue for the year 2 then one has to subtract cumulative revenue for 2 years minus revenue recognized in year 1

Sriram Somayajula

Admin

31-Jan-24 03:07

Whats your query?

CA Suraj Lakhotia

Admin

30-Jan-24 20:11

Sir, The explanation on the example.

Thread Starter

Swetha Saravanan

CFA L1

★ 0

30-Jan-24 20:12

Pls put in a table what you understood & what you did not - we will definitely assist you

Sriram Somayajula

Admin

30-Jan-24 21:12

Heree, price of the warehouse 10 million and the cost 8 million sir, while the calculation of second year , why should we deduct 5 million in the end ..sir

Thread Starter

Swetha Saravanan

CFA L1

★ 0

30-Jan-24 22:52