Allocation of Special Membership Entrance Fees over Time following Adoption of the Revenue Recognition Accounting Standard

「Goods or services transferred over a specified period − 59,077 − 59,077 Revenue from contracts with customers 3,111,921 59,077 11,841 3,182,840」

「Goods or services transferred over a specified period − 83,280 − 83,280 Revenue from contracts with customers 3,962,216 83,280 14,503 4,059,999」

「Goods or services transferred over a specified period − 55,421 − 55,421 Revenue from contracts with customers 2,878,087 55,421 11,226 2,944,735」

「Goods or services transferred over a specified period − 28,102 − 28,102 Revenue from contracts with customers 1,802,075 28,102 2,460 1,832,639」

「The company applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Standard”) and other standards from the beginning of the first quarter of the current fiscal year. Revenue is recognized at the point when control of the promised goods or services is transferred to the customer, at the amount expected to be received in exchange for those goods or services. Accordingly, for admission fees under the special membership program, the company changed from recognizing revenue when payment was received to recognizing revenue when the goods or services transferred over a specified period are provided. As a result, net sales for the cumulative first quarter decreased by ¥8.499 million, while operating profit, ordinary profit and profit before income taxes for the quarter each decreased by ¥8.499 million. The opening balance of retained earnings also decreased by ¥36.133 million.」