Software developer Ingésoft is building bespoke software for a mutual insurer, which controls the developments as they are made; the obligation is satisfied over time. The agreed fixed fee, the only component of the price, is 1,200,000. The project's cost budget, considered reliable, is 900,000. At 30 June 20X2, the first reporting date since the project started, Ingésoft has incurred 270,000 of costs, all reflecting its performance, and has invoiced 400,000 under the contractual schedule. Ingésoft measures progress using costs. What revenue does it recognise at that date?
- Agreed fixed fee
- 1,200,000
- Total expected costs
- 900,000
- Costs incurred at 30 June 20X2
- 270,000
- Amount invoiced
- 400,000