Recognition  of Expected Losses :

When it is probable that total contract costs will exceed total contract revenue, the expected loss should be recognised   as an expense immediately.

The amount of such a loss is determined irrespective of:

(a) whether or not work has commenced on the contract;

(b) the stage of completion of contract activity; or

(c) the amount of profits expected to arise on other contracts which are not treated as a single construction contract in accordance with paragraph 8.