Norvane is developing bespoke software for a hospital under a performance obligation satisfied over time. The contract provides for milestone payments made in advance. At 31 December 20X2, Norvane has collected a total of 610,000 and no other amount is due; revenue recognised since the start of the contract reaches 520,000. What net contract balance does Norvane present in its statement of financial position at that date?
- Revenue recognised since inception
- 520,000
- Payments collected (cumulative)
- 610,000