Workings

1       Item 1 is accrued based on value of work performed rather than accrued on a time apportioned basis in accordance with IAS 18. Only recoverable cost is recognized as revenue

1. For item 2, since the outcome of the service transaction cannot be reliably measured at the year end, only ·$8,000 is recognised as revenue rather than on a time apportioned basis.  This matches with the costs recognised ensuring that no profit is recorded until the outcome can be reliably measured.
2. The fair value of the revenue in Item 3 is:

       ($200,000 ´ 1/1.01⁶ ) = $188,409.

        Interest accrued to the year end is therefore (Nov & Dec):

       ($188,409 ´ 1.01²) – $188,409 = $3,787.