Under IFRS, if a firm cannot reliably estimate the outcome of a construction contract, it uses the zero-gross profit approach.

Name: Under IFRS, if a firm cannot reliably estimate the outcome of a construction contract, it uses the zero-gross profit approach.
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Under IFRS, if the outcome of a construction contract cannot be reliably estimated, revenue is recognized only to the extent of contract costs incurred that are likely to be recoverable, effectively resulting in zero gross profit.

Under IFRS, If a Firm Cannot Reliably Estimate the Outcome