Hydrotech is building a pumping station, an obligation satisfied over time, for a price of 900,000. At 31 December 20X1, four months after the start, the soil surveys are incomplete and Hydrotech cannot yet reasonably measure the outcome of the contract. It nevertheless expects to recover the costs incurred, which amount to 130,000. It has invoiced an advance of 200,000. What revenue does it recognise in 20X1?
- Transaction price
- 900,000
- Costs incurred at 31 December 20X1
- 130,000
- Advance invoiced
- 200,000