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At the beginning of 2007, Thunderbird Company started a 3-year construction project. The following data relates to the project:
Because of cost overruns, Thunderbird cannot reliably estimate the total cost of the project. However, Thunderbird expects that its costs incurred so far are recoverable. What amount of revenue should Thunderbird recognize for the year ended 2007 under U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS)?
Contract price $100 million
Costs incurred in 2007 $50 million
Progress billings $40 million
Collection of progress billings $37 million
| U.S. GAAP | IFRS |
| $0 | $0 |
| $37 million | $40 million |
| $0 | $50 million |