Estimation Uncertainty Under the Percentage-of-Completion Method
First written in FY2021. . Latest entry: FY2026.
The whole theme swung hardest in 2024: 9 of 63 companies on the "Worse" side.
21 other companies' latest entry also says "Other".
- FY2026Annual update to estimated amountsAnnual report
「Revenue recognized over time ¥88,553 million」
The uncertainty in estimates of total construction costs and other items continues to be disclosed, and revenue recognized over time amounted to ¥88,553 million. - FY2023Annual disclosure of estimated amountsAnnual report
「Total construction costs, which form the basis for revenue recognition, are estimated using the execution budget for each construction contract. However, the preparation of execution budgets involves uncertainty in estimating the procurement prices of subcontracting services, materials and other items required for the construction work. If, in the next consolidated fiscal year, there is a significant divergence between estimated total construction costs and actual cumulative costs incurred, or a significant change in estimated total construction costs, revenue related to the portion of work completed during the next consolidated fiscal year may not be appropriately reflected.」
The uncertainty in estimates under the percentage-of-completion method was reaffirmed as a significant accounting estimate disclosed annually, with ¥38,696 million in revenue recognized over time disclosed. - FY2021First statedAnnual report
「Total construction costs, which form the basis for recognizing revenue under the percentage-of-completion method, are estimated using the execution budget for each construction contract. However, the preparation of execution budgets involves uncertainty in estimating the procurement prices of subcontracting services, materials and other items required for the construction work, which may cause the Group's results to fluctuate.」
The uncertainty in estimating subcontracting costs and material procurement prices under the percentage-of-completion method is disclosed as a significant risk that may cause fluctuations in results.