Application of the Percentage-of-Completion Method Through Strengthening of the Cost Management Framework
First written in FY2020. 4 of 6 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2018: 1 of 6 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「For construction contracts, the Company estimates the progress toward satisfaction of performance obligations and recognizes revenue over time based on that progress. Progress toward satisfaction of performance obligations is estimated for each construction project using the input method, based on the ratio of costs incurred to total estimated construction costs, consisting of estimated material and subcontracting costs.」
In the consolidated financial statements, the Company has continued to recognize revenue over time based on construction progress and the input method following the adoption of the revenue recognition standard. - FY2022-Q3RestatedAnnual report
「For performance obligations satisfied over time as the Company fulfills them, the Company has changed to a method of estimating the progress toward satisfaction of the performance obligations and recognizing revenue over time based on that progress. The progress toward satisfaction of performance obligations is estimated using the cost-to-cost method. If the progress toward satisfaction of a performance obligation cannot be reasonably estimated, but the costs incurred are expected to be recovered, revenue is recognized under the cost-recovery method.」
Recognition of revenue based on the progress toward satisfaction of performance obligations under the revenue recognition standard, together with the continued application of the cost-to-cost method and the cost-recovery method, has continued. - FY2022-Q2RestatedAnnual report
「For performance obligations satisfied over time as the Company fulfills them, the Company has changed to a method of estimating the progress toward satisfaction of the performance obligations and recognizing revenue over time based on that progress. The progress toward satisfaction of performance obligations is estimated using the cost-to-cost method. If the progress toward satisfaction of a performance obligation cannot be reasonably estimated, but the costs incurred are expected to be recovered, revenue is recognized under the cost-recovery method.」
Recognition of revenue based on the progress toward satisfaction of performance obligations under the revenue recognition standard, together with the continued application of the cost-to-cost method and the cost-recovery method, has continued. - FY2022-Q1ReframedAnnual report
「For performance obligations satisfied over time as the Company fulfills them, the Company has changed to a method of estimating the progress toward satisfaction of the performance obligations and recognizing revenue over time based on that progress. The progress toward satisfaction of performance obligations is estimated using the cost-to-cost method. If the progress toward satisfaction of a performance obligation cannot be reasonably estimated, but the costs incurred are expected to be recovered, revenue is recognized under the cost-recovery method.」
The accounting method has been reorganized from the previous combined use of the percentage-of-completion method and the completed-contract method to recognition based on the progress toward satisfaction of performance obligations under the revenue recognition standard and the cost-recovery method. - FY2021RestatedAnnual report
「The percentage-of-completion method, with progress estimated using the cost-to-cost method, has been applied to construction projects for which the reliability of the results achieved through the progress made by the end of the current fiscal year is recognized, while the completed-contract method has been applied to other construction projects.」
The use of both the percentage-of-completion method and the completed-contract method for revenue recognition has continued in the annual report. - FY2020AchievedAnnual report
「From the current fiscal year, because the Company became able to make reliable estimates as a result of strengthening and improving its cost-management systems, and because construction projects with material amounts were undertaken even where the construction periods were short, the percentage-of-completion method, with progress estimated using the cost-to-cost method, has been applied to construction projects for which the reliability of the results achieved through the progress made by the end of the current fiscal year is recognized. The completed-contract method has been applied to other construction projects.」
Against the backdrop of strengthened and improved cost-management systems, the Company has used both the percentage-of-completion method and the completed-contract method since the current fiscal year.