REVENUE

Springthorpe entered into a three-year contract on 1 January 20X2 to build a factory. This is a contract where performance obligations are satisfied over time. The percentage of performance obligations satisfied is measured according to certificates issued by a surveyor. The contract price was $12 million. At 31 December 20X2 details of the contract were as follows.
Costs to date 6 m $
Estimated costs to complete 9 m
Amounts invoiced 4 m
Certified complete 40%
What amount should appear in the statement of financial position of Springthorpe as at 31 December 20X2 as contract assets/liabilities in respect of this contract?

in the solution it is stated that
Costs to date 6
Foreseeable loss (3)
Amounts invoiced (4)
Contract liability (1)
why we calculate loss amount 3 m but we do not calculate it like this: (12*40%)-((6+9)*40%)=1.2 m
if we had recognised profit instead of loss, we would take 40% of it, however in this problem we consider 100% instead of 40% of loss amount, why?