Estimation uncertainty related to construction revenue under the percentage-of-completion method
First written in FY2021. 3 of 5 entries say "Reframed", first in FY2022. Latest entry: FY2026.
Tomoe moved to the "Worse" side of this theme in 2022, 3 years before the typical company in this theme (2025).
The whole theme swung hardest in 2024: 11 of 69 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Revenue from completed construction under contracts for which performance obligations are satisfied over time (Percentage of revenue from completed construction) ¥24,578,522 thousand (88.0%)」
Revenue from completed construction under contracts for which performance obligations are satisfied over time decreased from ¥26,272,942 thousand in the previous fiscal year, while its percentage of revenue from completed construction increased from 83.7% to 88.0%. - FY2025AdvancedAnnual report
「Revenue from completed construction under contracts for which performance obligations are satisfied over time ¥26,272,942 thousand (83.7% of revenue from completed construction)」
Revenue from completed construction under contracts for which performance obligations are satisfied over time increased from ¥25,415,766 thousand, or 81.8%, in the previous fiscal year to ¥26,272,942 thousand, or 83.7%. - FY2023ReframedAnnual report
「Revenue from completed construction under contracts for which performance obligations are satisfied over time (excluding completed projects) ¥10,981,283 thousand (32.4% of revenue from completed construction) Revenue from completed construction under contracts for which performance obligations are satisfied over time ¥30,208,690 thousand (89.2% of revenue from completed construction)」
Under the revenue recognition accounting standard, revenue from completed construction was ¥10,981,283 thousand, or 32.4%, for incomplete projects and ¥30,208,690 thousand, or 89.2%, for all applicable completed construction revenue. - FY2022ReframedAnnual report
「Revenue from completed construction projects under contracts for which performance obligations are satisfied over time (excluding completed construction projects): ¥10,765,665 thousand (46.3% of revenue from completed construction projects)」
The contracts were reclassified from those accounted for under the former percentage-of-completion method as contracts for which performance obligations are satisfied over time under the revenue recognition standard. Revenue from the applicable completed construction projects was ¥10,765,665 thousand, representing 46.3% of revenue from completed construction projects. - FY2021First statedAnnual report
「In applying the percentage-of-completion method, the total contract revenue, total contract costs and percentage of completion at the end of the current consolidated fiscal year are reasonably estimated. If total contract revenue is revised due to specification changes or other matters agreed with the customer, or if total contract costs need to be revised due to changes in estimates of the work required and labor hours through completion, this may affect the performance of the Group.」
For ¥2,676,964 thousand in revenue from completed construction projects recognized under the percentage-of-completion method, changes in estimates of the construction period, material and subcontracting costs, labor costs and other items are disclosed independently for the first time as a material accounting estimate that may affect performance.