Counterparty Credit Concerns Before Receipt of Construction Payment
First written in FY2016. 4 of 5 entries say "Restated". Latest entry: FY2020.
The whole theme swung hardest in 2021: 3 of 13 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2020RestatedAnnual report
「Because the period from the start of construction to completion and handover is lengthy, a business partner's competitive or business environment may change substantially before construction payments are received. If this results in financial distress, the Group's business operations may be affected.」
The risk of a business partner's financial distress before construction payments are received is reconfirmed in connection with the lengthy construction period and changes in the partner's operating environment. - FY2019RestatedAnnual report
「In the construction industry, where contract amounts per transaction are large, if a business partner experiences financial distress before construction payments are received, the outstanding construction payments may become uncollectible, potentially affecting business performance and other matters.」
The risk that construction payments become uncollectible because of a business partner's financial distress is reiterated. - FY2018RestatedAnnual report
「In the construction industry, where contract amounts per transaction are large, if a business partner experiences financial distress before construction payments are received, the outstanding construction payments may become uncollectible, potentially affecting business performance and other matters.」
The risk that construction payments become uncollectible because a business partner experiences financial distress before payment is received is reiterated. - FY2017RestatedAnnual report
「In the construction industry, where contract amounts per transaction are large, if a business partner experiences financial distress before construction payments are received, the outstanding construction payments may become uncollectible, potentially affecting business performance and other matters.」
The risk that construction payments become uncollectible because a business partner experiences financial distress before payment is received is reiterated. - FY2016First statedAnnual report
「If a business partner experiences financial distress before construction payments are received, the outstanding construction payments may become uncollectible, potentially affecting business performance and other matters.」
Credit risk is explained in connection with the construction industry's characteristic of involving large contract amounts per transaction.