Construction Cost Estimation Risk Related to the Percentage-of-Completion Method and Provisions for Losses on Construction Contracts
First written in FY2020. 7 of 17 entries say "Worsened", first in FY2023. Latest entry: 2026-08-06.
Taihei Dengyo moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2024: 9 of 63 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「Provision for loss on construction contracts 1,055 1,173」
The provision for loss on construction contracts increased from ¥1,055 million at the end of March 2026 to ¥1,173 million at the end of June 2026. - FY2026WorsenedAnnual report
「Construction revenue from performance obligations satisfied over time 74,804 Provision for loss on construction contracts 1,055」
The provision for loss on construction contracts increased substantially from ¥131 million in the previous fiscal year to ¥1,055 million. The amount recognized in relation to construction costs and progress estimates has increased. - FY2025MitigatedAnnual report
「Provision for loss on construction contracts 752 131」
The provision for loss on construction contracts decreased from ¥752 million at the end of the previous fiscal year to ¥131 million at the end of the current fiscal year, reducing the amount recognized in relation to construction costs and progress estimates. - FY2025-H1WorsenedAnnual report
「Provision for loss on construction contracts 752 803」
The provision for loss on construction contracts increased from ¥752 million at the end of the previous consolidated fiscal year to ¥803 million at the end of the current interim consolidated accounting period, increasing the amount recognized in relation to construction costs and progress estimates. - FY2024WorsenedAnnual report
「Provision for loss on construction contracts 685 752」
The provision for loss on construction contracts increased from ¥685 million in the previous fiscal year to ¥752 million in the current fiscal year, increasing the amount recognized in relation to construction costs and progress estimates. - FY2024-Q3RestatedAnnual report
「Provision for loss on construction contracts 685 406」
The provision for loss on construction contracts decreased from ¥685 million at the end of the previous consolidated fiscal year to ¥406 million at the end of the third quarter of the current fiscal year, remaining at the same level as in the previous quarter. - FY2024-Q2Provision for losses on construction contracts decreasedAnnual report
「Provision for loss on construction contracts 685 406」
The provision for loss on construction contracts decreased from ¥685 million at the end of the previous consolidated fiscal year to ¥406 million at the end of the second quarter of the current fiscal year. - FY2024-Q1Provision for losses on construction contracts decreasedAnnual report
「Provision for loss on construction contracts 685 637」
The provision for loss on construction contracts decreased by ¥48 million, from ¥685 million at the end of the previous consolidated fiscal year to ¥637 million at the end of the first quarter of the current fiscal year. - FY2023WorsenedAnnual report
「Construction revenue from performance obligations satisfied over time 64,316 Provision for loss on construction contracts 685」
The provision for loss on construction contracts increased from ¥40 million in the previous fiscal year to ¥685 million, increasing the amount recognized in relation to the risk of changes in estimates of construction costs and progress. - FY2022RestatedAnnual report
「Although this estimate represents the best estimate based on construction specifications and other factors that could reasonably be recognized as of the end of the consolidated fiscal year, there is a risk that substantial changes may be required due to future changes in the construction environment or the crystallization of contract risks, which could materially affect the following fiscal year's results and financial statements.」
Following the adoption of the revenue recognition standard, the risk of changes in estimates of construction costs and progress relating to construction revenue of ¥63,574 million and a provision for loss on construction contracts of ¥40 million continues. - FY2022-Q3RestatedAnnual report
「During the nine-month period ended the third quarter, there were no major risks that management recognized as potentially having a material impact on the Group’s financial position, business performance or cash flows among the matters concerning the business and accounting conditions described in this quarterly report. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
States that there have been no new or material changes in existing risks, including construction cost estimation risk associated with the percentage-of-completion method and provisions for loss on construction contracts. - FY2021RestatedAnnual report
「Although this is the best estimate reasonably recognizable as of the end of the current consolidated fiscal year, taking into account construction specifications and other factors, changes in the future construction environment or the emergence of contractual risks could require substantial revisions, creating a risk of a material effect on the following fiscal year's results and financial statements.」
The risk associated with estimates under the percentage-of-completion method and the provision for loss on construction contracts continues to be disclosed, together with construction revenue of ¥61,765 million recognized under the percentage-of-completion method and a provision for loss on construction contracts of ¥229 million. - FY2021-Q3RestatedAnnual report
「During the nine-month period ended the third quarter, there were no major risks that management recognized as potentially having a material impact on the Group’s financial position, business performance or cash flows among the matters concerning the business and accounting conditions described in this quarterly report. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
States that there have been no new or material changes in existing risks, including construction cost estimation risk associated with the percentage-of-completion method and provisions for loss on construction contracts. - FY2021-Q1RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」
States that there have been no material changes in existing risks, including construction cost estimation risk associated with the percentage-of-completion method and provisions for loss on construction contracts. - FY2020First statedAnnual report
「Applying the percentage-of-completion method requires reasonable estimates of total construction revenue, total construction costs and the stage of completion as of the reporting date. Total construction costs, which form the basis for recognizing revenue under the percentage-of-completion method, are estimated using the execution budget for each contract. However, they may change because of unexpected costs and other factors, and if a revision becomes necessary, the amounts recognized in the consolidated financial statements could be materially affected.」
Newly states that estimates of construction revenue, costs and the stage of completion under the percentage-of-completion method, as well as estimates of provisions for loss on construction contracts, could materially affect the consolidated financial statements because of unexpected costs and technically difficult long-term construction projects.