Revenue - Example 6 (loss making contracts) - ACCA Financial Reporting (FR)

Loved It!

The costs to date is 25 therefore the p&l will already include this figure. How can the balancing p&l figure be less than incurred costs to date?

I stopped

I don't get how we can have our costs incurred to date as 23m as it is already given to us as 25m. Shouldn't we add the the costs as 25m and then balance off to get the Revenue, which will then be 20m instead of the current 18m

How to rout loss through provisions as for expected losses we can create a provision.