Collection risk relating to accounts receivable for completed construction work
First written in FY2016. 3 of 5 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2026: 5 of 19 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「When initiating new transactions and during ongoing transactions, we set credit limits based on objective criteria, taking into account the counterparty's financial position, operating performance and credit information from external agencies. We also continuously monitor the counterparty's business conditions and, if signs of credit concerns, such as payment delays or adverse rumors, emerge, promptly review the transaction terms and consider measures to protect receivables.」
In response to the collection risk for accounts receivable for completed construction work, the company has specified credit-limit setting, ongoing monitoring, review of transaction terms and measures to protect receivables. - FY2022MitigatedAnnual report
「To prepare for these industry-specific risks, our group maintains a rigorous credit-control framework, led by the accounting department, that includes thorough pre-transaction credit assessments and monitoring customer developments before handover of the work. In cooperation with the sales department, we also seek to improve the terms for collecting construction payments to ease the funding burden.」
The company continues to implement measures against collection risk, including pre-transaction credit assessments, monitoring customer developments and improving collection terms. - FY2021MitigatedAnnual report
「To reduce the risk of collecting construction contract receivables, we conduct thorough pre-transaction credit assessments, led primarily by the accounting department, and appropriately monitor customer developments from the start of a transaction until the work is handed over, under rigorous credit control.」
In response to the collection risk for accounts receivable for completed construction work, the company specifies pre-transaction screening and ongoing monitoring of customer developments as control measures. - FY2019RestatedAnnual report
「If a substantial amount of accounts receivable for completed construction work arises when the completed work is handed over, the group's operating results may be affected depending on the collection status.」
The company continues to disclose the risk that the collection status of accounts receivable for completed construction work may affect operating results. - FY2016First statedAnnual report
「If a substantial amount of accounts receivable for completed construction work arises when the completed work is handed over, the group's operating results may be affected depending on the collection status.」
The company identifies the collection status of accounts receivable for completed construction work arising after completion and handover as a risk to operating results.