Delivery Schedule and Profitability Risks in Larger, More Complex Projects
First written in FY2016. 6 of 10 entries say "Mitigated", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「At the end of the consolidated fiscal year 991」
The provision for contract losses decreased from ¥1,460 million at the end of the previous fiscal year to ¥991 million. Expected losses on customized software projects remain, but the provision balance has declined in numerical terms. - FY2024WorsenedAnnual report
「The provision for contract losses at the end of the consolidated fiscal year was ¥407 million.」
The provision for contract losses increased from ¥143 million at the end of the previous fiscal year to ¥407 million, indicating a numerical deterioration in project profitability risk. The risk has been quantified and expected actual losses have been recognized. - FY2023MitigatedAnnual report
「Provision for contract losses 143」
The provision for contract losses was ¥143 million, down from ¥521 million at the end of the previous fiscal year. Project profitability risk has declined in numerical terms. - FY2023-Q1MitigatedAnnual report
「Provision 741」
The provision balance under IFRS was ¥741 million, down from ¥890 million at the end of the previous consolidated fiscal year. Project profitability risk, including contract losses, has declined in numerical terms. - FY2022MitigatedAnnual report
「The provision for contract losses at the end of the consolidated fiscal year was ¥521 million.」
The provision for contract losses decreased from ¥2,255 million at the end of the previous fiscal year to ¥521 million, indicating a decline in project profitability risk in numerical terms. - FY2021WorsenedAnnual report
「The provision for contract losses at the end of the consolidated fiscal year was ¥2,255 million.」
The provision for contract losses increased from ¥999 million at the end of the previous fiscal year to ¥2,255 million, while the corresponding work in progress increased from ¥289 million to ¥1,049 million. The figures indicate a deterioration in project profitability risk. - FY2020MitigatedAnnual report
「Of the work in progress related to customized software projects expected to incur losses at the end of the fiscal year, the amount corresponding to the provision for contract losses was ¥289 million.」
The work in progress corresponding to the provision for contract losses decreased from ¥474 million in the previous fiscal year to ¥289 million, while the provision balance also decreased from ¥1,445 million to ¥999 million. - FY2018MitigatedAnnual report
「Of the work in progress related to customized software projects expected to incur losses at the end of the fiscal year, the amount corresponding to the provision for contract losses was ¥76 million.」
The work in progress corresponding to the provision for contract losses decreased from ¥435 million in the previous fiscal year to ¥76 million, while the provision balance also decreased from ¥1,059 million to ¥115 million. Although losses have occurred, the risk has declined in numerical terms. - FY2017MaterialisedAnnual report
「Of the work in progress related to customized software projects expected to incur losses at the end of the fiscal year, the amount corresponding to the provision for contract losses was ¥435 million.」
The company recorded a provision for contract losses of ¥1,059 million, with the corresponding work in progress also amounting to ¥435 million. The expected future losses relating to delivery, labor-hour and profitability risks are reflected in the financial figures. - FY2016First statedAnnual report
「As system requirements become increasingly sophisticated and complex and short delivery schedules are demanded, the company may be unable to complete and deliver projects in accordance with the delivery dates and labor-hour estimates made at contract inception, potentially resulting in claims for damages from customers and others, reputational damage, and other consequences.」
Project risks relating to delivery schedules, labor hours and profitability arising from more sophisticated and complex requirements and shorter delivery schedules.