Uncertainty in Estimating Construction Revenue, Costs and Progress Under the Percentage-of-Completion Method
First written in FY2017. 15 of 17 entries say "Restated". Latest entry: 2026-06-02.
The whole theme swung hardest in 2024: 9 of 64 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- 2026-06-02RestatedGeneral Meetings of Shareholders
「The key assumptions, including the quantities of equipment and materials used and the number of projects executed, involve a high degree of uncertainty. If actual results diverge from estimated amounts due to specification changes, additional construction work or other factors, the consolidated financial statements for the following consolidated fiscal year could be materially affected.」
Continues to disclose the key assumptions in recognizing construction revenue and the uncertainty arising from specification changes and additional construction work. - FY2026-H1RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2024RestatedAnnual report
「Revenue from construction contracts and other agreements involving performance obligations satisfied over a certain period ¥25,514 million」
The company continues to recognize revenue by calculating progress using the input method, based on the ratio of costs incurred to total estimated construction costs. Relevant revenue was ¥25,514 million. The key assumptions are the quantities of equipment and materials used and the number of installations, and the company discloses uncertainty arising from specification changes and additional construction. - FY2024-Q3RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2024-Q2RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2024-Q1RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2023-Q3RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2023-Q2RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning construction revenue and related matters. - FY2023-Q1RestatedAnnual report
「There have been no significant changes since the end of the previous consolidated fiscal year in the accounting estimates and assumptions described in the section titled “Analysis of Financial Position, Operating Results and Cash Flows by Management” in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no significant changes since the end of the previous fiscal year in the accounting estimates and assumptions concerning the percentage-of-completion method and related matters. - FY2022RestatedAnnual report
「Revenue from construction contracts and other agreements involving performance obligations satisfied over a certain period ¥17,719 million」
Following the adoption of the revenue recognition accounting standard, the company continues to estimate progress using the input method based on the ratio of costs incurred to total estimated costs and recognize revenue over time. The relevant revenue was ¥17,719 million. - FY2022-Q3RestatedAnnual report
「The company and its consolidated subsidiaries previously applied the percentage-of-completion method to construction projects under construction contracts and other agreements for which the outcome of work performed could be reliably determined, and the completed-contract method to other projects. From the first quarter of the current consolidated fiscal year, for performance obligations satisfied over a certain period, excluding construction projects completed over a very short period, the company estimates the progress toward satisfaction of the performance obligation and recognizes revenue over time based on that progress. Progress toward satisfaction of the performance obligation is estimated using the ratio of costs incurred to total estimated costs, or the input method.」
Following the adoption of the revenue recognition accounting standard, the company continues to recognize revenue by estimating progress toward satisfaction of performance obligations using the input method, based on the ratio of costs incurred to total estimated costs. - FY2022-Q2RestatedAnnual report
「As a result, revenue for the six-month period ended the second quarter of the current consolidated fiscal year increased by ¥1,893 million, while operating income, ordinary income and profit before income taxes for the quarter each increased by ¥622 million. The opening balance of retained earnings also increased by ¥291 million.」
The company continues to apply the method of estimating progress and recognizing revenue under the revenue recognition accounting standard and disclosed the impact for the six-month period ended the second quarter. - FY2022-Q1ReframedAnnual report
「The company and its consolidated subsidiaries previously applied the percentage-of-completion method to construction projects under construction contracts and other agreements for which the outcome of work performed could be reliably determined, and the completed-contract method to other projects. From the first quarter of the current consolidated fiscal year, for performance obligations satisfied over a certain period, excluding construction projects completed over a very short period, the company estimates the progress toward satisfaction of the performance obligation and recognizes revenue over time based on that progress. Progress toward satisfaction of the performance obligation is estimated using the ratio of costs incurred to total estimated costs, or the input method.」
The company changed from applying the percentage-of-completion and completed-contract methods to recognizing revenue based on estimated progress toward satisfaction of performance obligations, with progress calculated using the input method. - FY2021RestatedAnnual report
「The percentage of completion is calculated based on the ratio of costs incurred through the end of the consolidated fiscal year to total estimated construction costs. The key assumptions used to estimate total construction costs are the quantities of equipment and materials used and the number of installations.」
The company calculates the percentage of completion under the percentage-of-completion method using the cost-to-cost method and continues to disclose uncertainty in estimates of equipment and material usage and the number of installations. Revenue recognized under the percentage-of-completion method was ¥2,434 million. - FY2021-Q3RestatedAnnual report
「Construction projects for which the outcome through the end of the consolidated fiscal year can be reliably determined Percentage-of-completion method (the percentage of completion is estimated using the cost-to-cost method) Other construction projects Completed-contract method」
For construction projects to which the percentage-of-completion method applies, the company estimates the percentage of completion using the cost-to-cost method, while applying the completed-contract method to other projects. - FY2021-Q2RestatedAnnual report
「Construction projects for which the outcome through the end of the consolidated fiscal year can be reliably determined Percentage-of-completion method (the percentage of completion is estimated using the cost-to-cost method) Other construction projects Completed-contract method」
For construction projects to which the percentage-of-completion method applies, the company estimates the percentage of completion using the cost-to-cost method, while applying the completed-contract method to other projects. - FY2017First statedAnnual report
「When the percentage-of-completion method is applied, we reasonably estimate total construction revenue, total construction costs and the degree of progress at the fiscal year-end, and recognize completed construction revenue accordingly. Actual results may differ from these estimates because of the inherent uncertainty in estimates.」
Discloses that estimates of total revenue, total costs and progress under the percentage-of-completion method may differ from actual results.