Akawo Limited is a building contracting firm based in Abuja. ABC Limited awarded a contract to Akawo Limited to construct a residential building in Lagos. The agreed contract price is N80 million, and the completion date is December 31, 2017.

The following are details of transactions on the contract up to March 31, 2016:

• Contract commenced on July 1, 2015
• Contract costs incurred by March 31, 2016, include:
  • Architects and surveyor’s fees: N1,000,000
  • Materials: N6,200,000
  • Direct labor costs: N7,000,000
  • Overheads (40% of direct labor costs): N2,800,000
  • Estimated cost to completion (excluding depreciation): N29,600,000
  • Plant and machinery used exclusively on the contract: N7,200,000 (Depreciation based on period of use)
  • Material on-site as at March 31, 2016: N600,000

The value of the plant at the end of the contract would be N1.2m and the basis of depreciation
is period of usage. Material on site as at March 31, 2016 is N600,000.

Progress payment made by ABC Limited to Akawo Limited amounted to N25.6m as at March
31, 2016.

The following information is also relevant to the contract as at March, 31 2017:

Cost incurred since the commencement of the contract to date-N40.8m.
Estimated cost to completion (excluding depreciation) N13.2m

ABC Limited paid additional N32.4m to Akawo Limited on March, 31 2017 Akawo Limited
uses percentage of completion to determine profit on a contract.

Required:
Prepare in relation to the building contract, the statement of profit or loss extracts for the years ended March 31, 2016, and 2017, and the statement of financial position extracts as at the year ended on those dates.