QUESTION 58 ILLUSTRATION 58 Company X enters into an agreement on January 1, 2018 with a customer for renovation of hospital and install new air-conditioners for total consideration of $ 50,00,000. The promised renovation service, including the installation of new air-conditioners is a single performance obligation satisfied over time. Total expected costs are $ 40,00,000 including $ 10,00,000 for the air conditioners. Company X determines that it acts as a principal in accordance with paragraphs B34-B38 of IFRS 15 because it obtains control of the air conditioners before they are transferred to the customer. The customer obtains control of the air conditioners when they are delivered to the hospital premises. Company X uses an input method based on costs incurred to measure its progress towards complete satisfaction of the performance obligation. As at March 31, 2018, other costs incurred excluding the air conditioners are $ 6,00,000. Whether Company X should include cost of the air-conditioners in measure of its progress of performance obligation. How should revenue be recognized for the year ended March 2018.