Right to payment for performance completed to date
(paragraph 35(c))
B9 In accordance with paragraph 37, an entity has a right to payment for
performance completed to date if the entity would be entitled to an amount that
at least compensates the entity for its performance completed to date in the
event that the customer or another party terminates the contract for reasons
other than the entity’s failure to perform as promised. An amount that would
compensate an entity for performance completed to date would be an amount
that approximates the selling price of the goods or services transferred to date
(for example, recovery of the costs incurred by an entity in satisfying the
performance obligation plus a reasonable profit margin) rather than
compensation for only the entity’s potential loss of profit if the contract were to
be terminated. Compensation for a reasonable profit margin need not equal the
profit margin expected if the contract was fulfilled as promised, but an entity
should be entitled to compensation for either of the following amounts: