COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
|6 Months Ended|
Oct. 31, 2015
|COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS||
NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts”, represents revenue recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenue recognized. Costs and estimated earnings on uncompleted contracts consist of the following at October 31, 2015 and April 30, 2015:
Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which circumstances requiring the revisions become known. Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.
The entire disclosure for long-term contracts or programs.
Reference 1: http://www.xbrl.org/2003/role/presentationRef