1.

IFRS/PFRS for SMEs, Section 23, Revenue, provides the conditions that when a contract covers a
number of assets, the construction of each assets shall be treated as a separate construction
contract, except
a. Separate proposal have been submitted for each asset.
b. The price of the asset is negotiated without regard to the original contract price.
c. The cost and revenue of each asset are separately identifiable.
d. Each asset has been subject to separate negotiation and both contractors and customer
were able to accept or reject that part of the contract relating to each asset.

2. According to IFRS/PFRS for SMEs, Section 23, Revenue, when the outcome of a construction
contract cannot be estimated reliably, it should recognize revenue
a. By recording an equal amount of revenue for each work performed.
b. By using the percentage of completion method based on costs incurred compared to total
estimated costs.
c. Straight line over the life of the construction contract.
d. Only to the extent of the expenses recoverable.