Sir I must say coming across your video in psaf is amazing I almost gave up on writing psaf I already passed other papers but then your videos so far would make me register for this diet I’m so grateful for the simplicity in explanations wish I came across you earlier
TLDR: IPSAS 11 provides guidelines for accounting for construction contracts, including calculating revenue and cost, determining profit, and recognizing trade receivables. 00:00 📊 IPSAS 11 prescribes the accounting treatment for costs and revenue associated with construction contracts, which are binding arrangements for the construction of closely interrelated assets. 03:41 📊 IPSAS 11 excludes certain costs from contract costs and calculates estimated profit by deducting total contract cost from contract price. 09:20 📊 To recognize revenue and cost from a construction contract, calculate the stage of completion and apply it to estimate revenue and cost. 15:52 📊 To account for construction contracts, calculate profit, determine the amount due to/from customers, and identify trade receivables as current assets in the statement of financial position. 17:56 📊 A state-owned corporation wins a contract to build 20 classroom buildings and determines expected profit from the total contract price of 220 million naira. 22:33 📊 To determine profit from a construction contract, calculate the stage of completion using a formula based on contract price and total expected cost. 25:35 📊 To calculate revenue from a construction contract, use the value of work certified or a percentage of the total contract price, and multiply the total expected cost by the stage of completion. 29:38 📊 To calculate the amount due to/from the client for a construction contract, add cost to date and profits taken, then subtract progress payments received.
Thank you sir for your always simplied solution to questions that looks difficult at first. My question sir, you said value of work certified can be calculated either 2ways. Input or output method. What do we look out for to know what basis we should use? The above question solved said use basis of the value of work completed, how does it show we are to use the output method to calculate the stage of completion?
@obasifrances4208 Input are the resources you put into the contract in the form of money expended in the contract. Amount spent in the contract in the form of expenses or cost. That is it is cost to date over estimated total costs
Thank you for the solution to this question sir, can you also help to solve question 3 and 4. I partook in the diet but passed PM, FR and Tax. This was largely because of your videos. I was unable to do much in PSAF and CSME due to circumstances beyond my control. We have less than three weeks to the next diet and i am feeling like i havent done much in PSAF and CSME. Sir, can we have more videos on PSAF?
Il be back after this diet with my testimony of psaf. Bless you sir❤❤.Im writing tomorrow
The eyes of God will go with you to the exams hall in Jesus name
Sir I must say coming across your video in psaf is amazing I almost gave up on writing psaf I already passed other papers but then your videos so far would make me register for this diet I’m so grateful for the simplicity in explanations wish I came across you earlier
Thank you
😢please where can I see other videos on PSAF
@@okolokarina2802 ua-cam.com/play/PLvXG5IKPl2zhYgB884wzqF_iPVALx2-f4.html&si=ayDTLsDyl9E6a12g
Nice to see you again. Thank you for all you do
Glory be to God
TLDR: IPSAS 11 provides guidelines for accounting for construction contracts, including calculating revenue and cost, determining profit, and recognizing trade receivables.
00:00 📊 IPSAS 11 prescribes the accounting treatment for costs and revenue associated with construction contracts, which are binding arrangements for the construction of closely interrelated assets.
03:41 📊 IPSAS 11 excludes certain costs from contract costs and calculates estimated profit by deducting total contract cost from contract price.
09:20 📊 To recognize revenue and cost from a construction contract, calculate the stage of completion and apply it to estimate revenue and cost.
15:52 📊 To account for construction contracts, calculate profit, determine the amount due to/from customers, and identify trade receivables as current assets in the statement of financial position.
17:56 📊 A state-owned corporation wins a contract to build 20 classroom buildings and determines expected profit from the total contract price of 220 million naira.
22:33 📊 To determine profit from a construction contract, calculate the stage of completion using a formula based on contract price and total expected cost.
25:35 📊 To calculate revenue from a construction contract, use the value of work certified or a percentage of the total contract price, and multiply the total expected cost by the stage of completion.
29:38 📊 To calculate the amount due to/from the client for a construction contract, add cost to date and profits taken, then subtract progress payments received.
Thank you for this sir.
Thank you so much for this....
God bless you sir
Amen
Thank you sir😊
Thank you very much
🙏
Sir how do we handle progress billing, is it the same as amount billed
Same
@Ezikan Thank you a lot, Sir. FOR SURE I ONLY GET 10% FROM MY LECTURER 90% I LEARN FROM YOU.MAY YOU BE BLESS .
@lamwogirl4605 Amen, thanks
Sir if the stage of completion is silent what do we do?
You look at the information provided in the question to know which method would be appropriate
Thank you sir for your always simplied solution to questions that looks difficult at first. My question sir, you said value of work certified can be calculated either 2ways. Input or output method. What do we look out for to know what basis we should use? The above question solved said use basis of the value of work completed, how does it show we are to use the output method to calculate the stage of completion?
In my explanation, I said the output method is based on the proportion of work certified to the contract price
Value of work certified is the output of work done
Thank you very much for your explanation. I get the aspect of output now. How about the input, what would be the basis?
@obasifrances4208 Input are the resources you put into the contract in the form of money expended in the contract.
Amount spent in the contract in the form of expenses or cost.
That is it is cost to date over estimated total costs
Sir, could you simplify these two things:
1. Amount due to or due from
2. Account billed to client
Pls sir ....the other aspect of IFRS 15 , thats when an estimated loss is gotten. How will it be treated
You make provisions for it
Good afternoon sir, the question solved here is from where sir. Thank you sir
I have found it, November 2023, Q1
Ok
Thank you for the solution to this question sir, can you also help to solve question 3 and 4. I partook in the diet but passed PM, FR and Tax. This was largely because of your videos. I was unable to do much in PSAF and CSME due to circumstances beyond my control. We have less than three weeks to the next diet and i am feeling like i havent done much in PSAF and CSME. Sir, can we have more videos on PSAF?
Congratulations on your success on those videos. You have passed the most difficult courses
I have released more videos in PSAF this season and I am still planning of releasing more videos
Hello, good work. I am in Kenya and interested to have partnership with you. I teach FR, FM and taxation
🤎
Thanks for your comment
sir please contract cost for foundation level..MI
Pls, what diet question do you want me to solve?
May 2022 Que 2, or may 2023 question 3..sir