In the case of a fixed price contract,AASB 111 specifies four conditions that must all be met in order for the percentage of completion method to be applied.These conditions include:
A) Costs related to the contract can be clearly identified and measured reliably.
B) It is probable that the economic benefits arising from the contract will flow to the contractor.
C) The entity commissioning the work has a good credit rating and is able to pay its debts.
D) Costs related to the contract can be clearly identified and measured reliably and it is probable that the economic benefits arising from the contract will flow to the contractor.
E) All of the given answers.

Question

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AASB 111 specifies four conditions that must all be met for the percentage of completion method to be applied in a fixed price contract. The conditions are that costs related to the contract can be clearly identified and measured reliably, and it is probable that the economic benefits arising from the contract will flow to the contractor. Option D includes both of these conditions, while the other options either include irrelevant information or incomplete information.

In the Case of a Fixed Price Contract,AASB 111 Specifies