Neratel

[KopiKat]

Hi All

I tabulated out the total contract received by neratel in past 5 years from www.sgx.com.

Year Total Contract (miL)
2012 58.4 (as of today)
2011 51.1
2010 81.7
2009 34.8
2008 89.4
2007 84.8

Anyway to know how they recognize the contract value?

From AR2011 (Pg 51),

2.16 Contract work-in-progress

Contract work-in-progress is stated at the aggregate of contract costs incurred to date plus profit recognised based on the value of work completed less progress billings and provisions for foreseeable losses.

Cost includes both variable and fixed costs directly related to specific contracts and those which can be attributed to contract activity in general and which can be allocated to specific contracts. Also included are any costs expected to be incurred under penalty clauses and rectification provisions.

The percentage of completion is measured by reference to the cost incurred to date as a percentage of total estimated cost for each contract which approximates the progress billings that match the billing milestones as indicated in the contract, to the total contract sum.

Where it is probable that a loss will arise on completion of contracts entered into at the balance sheet date, the excess of total estimated costs over expected revenue is recognised as an expense mmediately.

Pg 67 gives the computation for the figures used in the Balance Sheet under Current Assets.