IFRS Contract - outcome can't be measured reliably

CFA Level I
#1

A firm that reports under IFRS is producing under a long-term contract for which it cannot measure the outcome reliably. In the first year of the contract, the firm has spent €300,000 and collected €200,000 in cash. What amounts related to this contract should the firm recognize on its income statement for the year?

The answer says to recognize 300k in revenue, 300k in expenses, and no profit. Why isn’t it 300k in expenses, 200k in revenue, with no profit…?

I know IFRS doesnt recognize profit until contract is complete, so is the method requiring us to arbitrarily add 100k to revenue so the two remain equal?

#2

Yes, and to accounts receivable.

#3

Do not get thrown on the cash received. If the project could be measured reliably and you used percentage completion, you may be recognizing 600k in revenue even though you only received 200k in payments. The whole point of revenue recognition is to try and match revenues and costs.