Change in Revenue Recognition Method for the Hanger Deposit System
First written in FY2025-Q1. 1 of 2 entries say "Restated". Latest entry: FY2025-H1.
16 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「Regarding payments for hangers purchased under the hanger deposit program operated at our stores, under which we purchase hangers brought in by customers that were attached to cleaned garments finished in three-dimensional form, we previously recognized the payments in selling, general and administrative expenses when the hangers were returned by customers and payment was made. From the beginning of the interim accounting period under review, however, we changed the method to deduct the payments from revenue when cleaning was completed and the customer was able to collect the garments.」
The company has continued to apply in the interim period the accounting policy changed from recognizing hanger payments in selling, general and administrative expenses to deducting them from revenue when cleaning is completed. Compared with before retrospective application, revenue, gross profit and selling, general and administrative expenses for the previous interim accounting period each decreased by ¥82.561 million. - FY2025-Q1First statedAnnual report
「Regarding payments for hangers purchased under the hanger deposit program operated at our stores, under which we purchase hangers brought in by customers that were attached to cleaned garments finished in three-dimensional form, we previously recognized the payments in selling, general and administrative expenses when the hangers were returned by customers and payment was made. From the beginning of the first quarter cumulative period under review, however, we changed the method to deduct the payments from revenue when cleaning was completed and the customer was able to collect the garments. This change was made to achieve more appropriate profit and loss calculations in light of the expected increase in the number of items handled under the hanger deposit program following the acquisition of a business, as well as the ongoing changes in management policies, including changing suppliers in response to trends in hanger purchase prices. This change in accounting policy was applied retrospectively, and the quarterly financial statements and financial statements for the first quarter cumulative period and the previous fiscal year have been prepared on a retrospectively applied basis. As a result, compared with before the retrospective application, revenue, gross profit and selling, general and administrative expenses for the first quarter cumulative period of the previous fiscal year each decreased by ¥47.947 million. There was no effect on the balance of retained earnings at the beginning of the previous fiscal year or on basic earnings per share for the first quarter cumulative period of the previous fiscal year.」
For payments for hangers under the hanger deposit program, the company changed from recognizing them in selling, general and administrative expenses to deducting them from revenue when cleaning was completed. Against the backdrop of an expected increase in the number of items handled following the acquisition of a business and changes in management policies, including a change of suppliers, retrospective application reduced revenue, gross profit and selling, general and administrative expenses for the first quarter of the previous fiscal year by ¥47.947 million.