Questions
Contraction Contract Revenue

 

DHA Developer owned 100 hectares of land with a fair value of RM20 million and decides to convert the land to develop a new town in Nilai that comprise a phase residential houses. The company incurred a cost to convert the land into residential land amounted RM5 million. The land is designated for the following purposes:

  • Project 1 - 40 hectares to build 200 link houses – selling price RM500,000 per unit
  • Project 2 -  50 hectares to build 100 luxury homes – selling price RM1 million per unit
  • Common costs - 10 hectares for infrastructure and other common amenities

 

In year x1, the company launched its link house project and sold 120 houses at a selling price of RM500,000 per house. The infrastructure cost is estimated at RM8 million and RM5.6 million was incurred in year x1. At the end of year x1, property development costs incurred was RM9.6 million. Estimated development costs to complete were determined to be RM14.4 million.

 

It is a policy of the company to account for the construction revenue and cost using percentage-of-completion method based on cost-to-cost basis.

 

Required:

 

  1. Based on MFRS 15 Revenue from Contracts with Customers, give justification for DHA Developer to use percentage of completion method.
  2. Determine the profits to be recognised in the financial year ends 31 December x1. Show your workings.
  3. Discuss how should property developers recognise revenue when a contract does not specify the entity’s right to payment over the performance completed to date?

 

In: Accounting

In a quality control test for pavement construction, the engineer cut out a core of the...

In a quality control test for pavement construction, the engineer cut out a core of the asphalt mix. Laboratory tests were conducted on the core to determine the volumetric properties of the mix. The dry mass of the core is 1200 g, the saturated surface dry mass is 1202.5 g and the submerged mass is 691.9 g. The engineer separated the bitumen from aggregate and found that the dry mass of the aggregate was 1132.8g. The specific gravity of bitumen is 1.05 and the percentage of bitumen absorption is 0.5%. The aggregate bulk specific gravity is 2.76, determine the following:


a) bulk specific gravity of the compacted mix


b) Effective specific Gravity aggregates


c) max theoretical specific gravity of asphalt mix


d) percentage by mass of effective binder content


e) percentage of air voids in the total mix


f) pencetage of voids in the mineral aggregates



In: Civil Engineering

i want you to make balance scorecard on any of the following business: Grocery store Hospital...

i want you to make balance scorecard on any of the following business:

Grocery store
Hospital
Auto manufacturer
Law office
Coffee shop
Movie theater

In: Accounting

Creat a theater booking system in java language using : 1.OOP objects -Classes 2.encapsulation 3.polymorphism 4.inheritance...

Creat a theater booking system in java language using :

1.OOP objects -Classes
2.encapsulation
3.polymorphism
4.inheritance
5.abstract class

In: Computer Science

Problem 13: Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses...

Problem 13: Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.

Demand = 90 bags/week

Order Cost= $54/0rder

Annual Holding cost = 27% of cost

Desired cycle-service level = 80%

Lead time = 3 weeks (18 working days)

Standard deviation of weekly demand = 15 bags

Current on-hand inventory is 320 bags, with no open orders or backorders.

Suppose that Sam's Cat Hotel in Problem 13 uses a P system instead of a Q system. The average weekly demand is d = 90 bags and the standard deviation of the weekly demand is σ= 15 bags.

a. What P (in weeks) and T should be used to approximate the cost trade-offs of the EOQ?

b. How much more safety stock is needed than with a Q system?

c. It is time for the periodic review. How much kitty litter should be ordered?"

In: Operations Management

A hotel has 210 units. All rooms are occupied when the hotel charges ​$90 per day...

A hotel has 210 units. All rooms are occupied when the hotel charges ​$90 per day for a room. For every increase of x dollars in the daily room​ rate, there are x rooms vacant. Each occupied room costs $ 36 per day to service and maintain. What should the hotel charge per day in order to maximize daily​ profit?

In: Math

1) A cylindrical glass is to be made to hold 250 cm3 of water. If the...

1) A cylindrical glass is to be made to hold 250 cm3 of water. If the cost of making the cylindrical surface of the glass is half the cost of making the bottom surface, what are the dimensions of the glass such that the cost of making it is minimized?
2) We want to construct a box with a square base and we only have
10 m2 of material to use in construction of the box. Assuming that all the materials is used in the construction process. Determine the maximum volume that the box can have.

In: Math

Regarding Anne Moody's autobiography answer the following questions: Why didn’t more southern blacks join the movement?...

Regarding Anne Moody's autobiography answer the following questions:

Why didn’t more southern blacks join the movement?

2. Why did Anne Moody become a civil rights activist?  Was it a case of nature or nurture?

3. What were Anne Moody’s frustrations with the civil rights movement?  Why had she become disillusioned by 1963?

4. How has Anne Moody’s autobiography added to your understanding of the history of race relations in the South during the 1940s and 1950s as well as the civil rights movement’s efforts to improved conditions?  Be specific.

In: Psychology

Suppose the home construction industry is perfectly competitive. When the industry expands or contracts in the...

Suppose the home construction industry is perfectly competitive. When the industry expands or contracts in the long run, the minimum possible average cost of home building remains fixed at $50 per square foot. Suppose the industry is currently in equilibrium. If the demand for housing decreases,

a. the price of home construction will fall both in the short run and the long run.

b. the price of home construction won't fall in the short run, but will fall in the long run.

c. the price of home construction will go down in the short run, but return to an equilibrium price of $50 per square foot in the long run.

d. the price of home construction won't fall either in the short run or the long run.

In: Economics

A survey of 1320 people who took trips revealed that 108 of them included a visit...

A survey of 1320 people who took trips revealed that 108 of them included a visit to a theme park. Based on those survey results, a management consultant claims that less than 9 % of trips include a theme park visit. Test this claim using the ?=0.05

significance level.

Find

(a) The test statistic

(b) The P-value

(c) A or B in conclusion
A. There is not sufficient evidence to support the claim that less than 9 % of trips include a theme park visit.
B. There is sufficient evidence to support the claim that less than 9 % of trips include a theme park visit.

In: Math