Answer to Question #81087 in Finance for Hugh Heron

Question

You have been asked to provide an accurate and up-to-date profit and loss report on work in process for a particular job. What data might you draw on, what reports might you need to access and how would you ensure that the information you provide is error free and comprehensive?

SPECIFICALLY LIST THE DATA THAT IS REQUIRED AND EXPLAIN HOW THE DATA IS ERROR FREE AND COMPREHENSIVE

Answer 1

For work in progress, for a particular job, expenses and revenues must be included in the income statement. Which are associated with the performance of a particular job. They are displayed in the income statement as the work progresses. This way will allow users of the report to receive useful information. The fact of completion of the working stage confirms the act of completed work (interest, certificate).
To guarantee the completeness and reliability of information, you need to access information:
The agreement on performance of work contains the information on the income for performance of all volume.
The estimate of the performance of work contains information on the costs for the implementation of the entire volume.
The completed work certificate contains information on the income and expenses of the working phase.