Sylvae Conseil began, in November 20X2, an engagement to redesign a hospital's processes, satisfied over time, for a fee of 400,000. At 31 December 20X2, the final scope has not been settled and the firm cannot reasonably measure the outcome of the engagement; it nevertheless expects to recover the costs incurred, that is 47,500. Its usual target margin is 25 %. What revenue does it recognise for 20X2?
- Agreed fee
- 400,000
- Costs incurred at 31 December 20X2
- 47,500
- Usual target margin
- 25 %