Review of the requirements for applying the percentage-of-completion method
First written in FY2017-Q1. 5 of 8 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2018: 1 of 6 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「For performance obligations satisfied over time under construction contracts, except for projects with very short durations, the Company estimates the progress toward satisfaction of the performance obligation and recognizes revenue based on that progress.」
The Company continued to recognize revenue over time based on progress and disclosed net sales from completed projects of ¥4,230,104 thousand for unfinished projects. - FY2024AdvancedAnnual report
「For performance obligations satisfied over time under construction contracts, except for projects with very short durations, the Company estimates the progress toward satisfaction of the performance obligation and recognizes revenue based on that progress.」
The Company continued to recognize revenue based on the progress of construction, and disclosed net sales from completed projects of ¥3,691,660 thousand for unfinished projects related to performance obligations satisfied over time. - FY2021RestatedAnnual report
「For construction contracts for which the certainty of the outcome can be recognized, the Company applies the percentage-of-completion method, using the cost-to-cost method to estimate the percentage of completion. For other projects, it applies the completed-contract method. Net sales from completed projects recognized under the percentage-of-completion method were ¥2,035,679 thousand.」
The Company continued its accounting policy of applying the percentage-of-completion method based on certainty of the outcome and the cost-to-cost method, and the completed-contract method to other projects, and disclosed net sales from completed projects of ¥2,035,679 thousand recognized under the percentage-of-completion method. - FY2020RestatedAnnual report
「For construction contracts for which the certainty of the outcome can be recognized, the Company applies the percentage-of-completion method, using the cost-to-cost method to estimate the percentage of completion. For other projects, it applies the completed-contract method. Net sales from completed projects recognized under the percentage-of-completion method were ¥1,435,370 thousand.」
The Company continued its accounting policy of applying the percentage-of-completion method based on certainty of the outcome and the cost-to-cost method, and the completed-contract method to other projects, and disclosed net sales from completed projects of ¥1,435,370 thousand recognized under the percentage-of-completion method. - FY2018ReframedAnnual report
「For projects for which the certainty of the outcome can be recognized with respect to the portion of progress through the end of the fiscal year, the Company applies the percentage-of-completion method, using the cost-to-cost method to estimate the percentage of completion. For other projects, it applies the completed-contract method. Net sales from completed projects recognized under the percentage-of-completion method were ¥2,419,541 thousand.」
Rather than the specific application requirements for contract values and other items disclosed previously, the Company described its accounting policy based on certainty of the outcome and the cost-to-cost method, and disclosed net sales from completed projects of ¥2,419,541 thousand recognized under the percentage-of-completion method. - FY2017RestatedAnnual report
「The Company applies the percentage-of-completion method. The requirements for its application are a contract value exceeding ¥50,000 thousand, a project period exceeding 3 months, and an expected sales value for scrap and other marketable materials of no more than 10% of the contract value.」
The Company disclosed the same numerical requirements this time for applying the percentage-of-completion method, which it reviewed in the first quarter. - FY2017-Q2RestatedAnnual report
「As a result of the review, the requirements for applying the percentage-of-completion method were changed to: a contract value exceeding ¥50,000 thousand, a project period exceeding 3 months, and an expected sales value for scrap and other marketable materials of no more than 10% of the contract value. As no projects newly became subject to the percentage-of-completion method during the six-month period of the second quarter as a result of this change, there was no impact on the quarterly financial statements.」
The Company continued to explain in additional information the requirements for applying the percentage-of-completion method that were changed from the first quarter. No projects newly became subject to the method under the revised requirements, and the Company stated that there was no impact on the financial statements. - FY2017-Q1First statedAnnual report
「The Company had previously applied the percentage-of-completion method to plant demolition projects that met certain requirements, defined as: a contract value exceeding ¥30,000 thousand, a project period exceeding 3 months, and an expected sales value for scrap and other marketable materials of ¥1,000 thousand or less. However, as the number of projects increased and projects became larger in scale due to the increase in renovation and demolition work associated with the aging of plant facilities and the increase in restructuring associated with corporate reorganizations and overseas relocations, applying the percentage-of-completion method based on these requirements would cause the Company's results to no longer reflect actual conditions. Accordingly, the Company reviewed the requirements from the first quarter accounting period. As a result, the requirements for applying the percentage-of-completion method were changed to: a contract value exceeding ¥50,000 thousand, a project period exceeding 3 months, and an expected sales value for scrap and other marketable materials of no more than 10% of the contract value. As no projects newly became subject to the percentage-of-completion method during the first quarter accounting period as a result of this change, there was no impact on the quarterly financial statements.」
In response to the increase in project size, the Company changed the requirements for applying the percentage-of-completion method from the first quarter accounting period. The contract value threshold was changed from exceeding ¥30,000 thousand to exceeding ¥50,000 thousand, and the condition for the expected sales value of scrap and other marketable materials was set at no more than 10% of the contract value.