CONTRACTS IN PROGRESS
|9 Months Ended|
Jul. 31, 2021
|Revenue from Contract with Customer [Abstract]|
|CONTRACTS IN PROGRESS||
NOTE 9 – CONTRACTS IN PROGRESS
Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated project expenses and fees which have not been invoiced to customers as of the date of the balance sheet. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $1,167,561 and $861,300 as of July 31, 2021 and October 31, 2020, respectively.
Our current Deferred Revenue of $1,520,871 and $1,006,454 as of July 31, 2021 and October 31, 2020, respectively, consists of billings in excess of costs and revenues received as part of our warranty and Through Life Support (TLS) obligations upon completing a sale, as elaborated further in the last paragraph of this note.
Revenue received as part of sales of equipment includes a provision for warranty, extended warranty sales and TLS and is treated as deferred revenue. These amounts are amortized over the relevant warranty period (12 months is our standard warranty or 24, 36 or 60 months for extended warranty or TLS) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of non-current Deferred Revenue and were $181,248 and $195,022 as of July 31, 2021 and October 31, 2020, respectively.
CODA OCTOPUS GROUP, INC.
Notes to the Unaudited Consolidated Financial Statements
July 31, 2021 and 2020
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef