CERTYNEX IFRS ACADEMY

Olbrane's contract provides for invoicing the customer only on completion of the work. If the customer terminates for reasons other than Olbrane's failure to perform, Olbrane is nevertheless entitled, at all times, to the costs incurred plus a reasonable margin. The CFO considers that there is no right to payment for performance completed to date, as there is no present right to invoice. What is your view?

He is right: only a present, unconditional right to invoice is a right to payment.

He is right: the right to payment requires regular advances during performance.

He is wrong: the right to payment need not be present and unconditional.

He is wrong, but only if the customer has already paid an advance.