Risk of projects becoming unprofitable due to changes in estimates and requirements
First written in FY2016. 11 of 27 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
15 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for losses on orders ¥1.749 million －」
The provision for losses on orders decreased from ¥1.749 million at the end of the previous fiscal year to zero at the end of the current fiscal year, and no estimated losses on unprofitable projects remain in the financial statements. - FY2026-H1MitigatedAnnual report
「Provision for losses on orders ¥1.749 million ¥3.891 million」
The provision for losses on orders was ¥3.891 million at the end of the current interim period. Although it increased from the beginning of the current interim period, it decreased significantly from the ¥76.017 million reported for FY2025-H1, indicating that estimated losses on unprofitable projects have declined. - FY2025-H1WorsenedAnnual report
「Provision for losses on orders ¥6.197 million ¥76.017 million」
The provision for losses on orders increased from ¥6.197 million at the end of the previous consolidated fiscal year to ¥76.017 million at the end of the current interim consolidated fiscal period, indicating a significant increase in estimated losses on unprofitable projects. - FY2024MitigatedAnnual report
「If there is a material change in the estimate of total project costs, it may affect business performance.」
Although uncertainty in project cost estimates and the risk of projects becoming unprofitable continue to be recognised, the provision for losses on orders decreased from ¥30.239 million at the end of the previous fiscal year to ¥6.197 million. - FY2024-Q3MaterialisedAnnual report
「In the public sector, solution revenue increased, but certain unprofitable projects affected profit. As a result, revenue was ¥3,213 million, up 8.9% year on year, while operating profit was ¥420 million, down 12.2%.」
Certain unprofitable projects actually arose in the public sector and affected profit. Meanwhile, the provision for losses on orders decreased from ¥30.239 million at the end of the previous consolidated fiscal year to ¥0.470 million. - FY2024-Q2MitigatedAnnual report
「Provision for losses on orders ¥30.239 million ¥1.007 million」
The provision for losses on orders decreased from ¥30.239 million at the end of the previous consolidated fiscal year to ¥1.007 million at the end of the second quarter. Although estimated losses on unprofitable projects remain, the provision decreased significantly. - FY2024-Q1MaterialisedAnnual report
「Provision for losses on orders ¥30.239 million ¥24.301 million」
Although it decreased from the end of the previous consolidated fiscal year, a ¥24.301 million provision for losses on orders was recognised at the end of the first quarter, meaning that the risk relating to unprofitable projects has been reflected in the financial statements. - FY2023-Q3MitigatedAnnual report
「Provision for losses on orders ¥31.804 million －」
The provision for losses on orders decreased from ¥31.804 million at the end of the previous consolidated fiscal year to zero at the end of the third quarter, and no estimated losses on unprofitable projects remain in the financial statements. - FY2023-Q2MitigatedAnnual report
「Provision for losses on orders ¥31.804 million ¥18.014 million」
The provision for losses on orders decreased from ¥31.804 million at the end of the previous consolidated fiscal year to ¥18.014 million at the end of the second quarter. Although estimated losses on unprofitable projects remain, the provision decreased. - FY2023-Q1MitigatedAnnual report
「Provision for losses on orders ¥31.804 million ¥19.987 million」
The provision for losses on orders decreased from ¥31.804 million at the end of the previous consolidated fiscal year to ¥19.987 million at the end of the first quarter. Although estimated losses on unprofitable projects remain, the provision decreased. - FY2022MaterialisedAnnual report
「Provision for losses on orders － ¥31.804 million」
The risk of unprofitable projects associated with estimating total project costs has been reflected in the financial statements for the current consolidated fiscal year as a ¥31.804 million provision for losses on orders. - FY2022-Q3WorsenedAnnual report
「Provision for losses on orders － ¥43.902 million」
The provision for losses on orders increased from zero at the end of the current consolidated fiscal year to ¥43.902 million at the end of the third quarter of the current consolidated fiscal period, indicating that the estimated losses on unprofitable projects increased from ¥21.293 million in the previous quarter. - FY2022-Q2MaterialisedAnnual report
「Change in provision for losses on orders (△ indicates a decrease) △ ¥4.679 million ¥21.293 million」
At the end of the second quarter of the current consolidated fiscal period, a ¥21.293 million provision for losses on orders was recognised, meaning that the risk of unprofitable projects associated with estimates and other factors has been reflected in the financial statements. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2021RestatedAnnual report
「In managing project risks, the Group prioritises early identification of risks and works to quickly obtain risk information through regular meetings, including monthly meetings to assess progress criteria, as well as approval of project budgets and routine monitoring.」
Uncertainty in project cost estimates continues to be recognised as a risk, and measures including budget approval, routine monitoring, monthly meetings to assess progress criteria and improved estimate accuracy continue to be implemented. - FY2021-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2020RestatedAnnual report
「Accordingly, changes in various requirements, or in work hours, subcontracting costs and other factors, may cause the expected profit at the time of receiving an order to fluctuate or result in unprofitable projects, thereby affecting business performance.」
The risk of unprofitable projects arising from changes to estimates and requirements, together with management measures involving early identification, routine monitoring, monthly meetings and improved estimate accuracy, continues to be addressed. - FY2020-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2020-Q2RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2020-Q1RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2019RestatedAnnual report
「Accordingly, changes in various requirements, or in work hours, subcontracting costs and other factors, may cause the expected profit at the time of receiving an order to fluctuate or result in unprofitable projects, thereby affecting business performance.」
The risk of unprofitable projects and management measures involving early identification, routine monitoring, monthly meetings and improved estimate accuracy continue to be maintained. - FY2019-Q2RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is classified as having no material change regarding the risk of unprofitable projects arising from changes to estimates and requirements. - FY2018MitigatedAnnual report
「In addition, before work begins, we seek to improve the accuracy of project planning, including the accuracy of estimates and clarification of the scope of work, while pursuing the appropriateness of our development structure, including development skills and the selection of partner companies, and work to strengthen our project management structure.」
Measures relating to estimate accuracy, scope of work, the development structure and monthly meetings continue to be implemented while maintaining awareness of the risk of unprofitable projects. - FY2017MitigatedAnnual report
「In addition, before work begins, we seek to improve the accuracy of project planning, including the accuracy of estimates and clarification of the scope of work, while pursuing the appropriateness of our development structure, including development skills and the selection of partner companies, and work to strengthen our project management structure.」
While maintaining awareness of the risk of unprofitable projects, specific measures are being developed, including monthly meetings, improved estimate accuracy and clarification of the scope of work. - FY2016First statedAnnual report
「Changes in various requirements, or in work hours, subcontracting costs and other factors, may cause the expected profit at the time of receiving an order to fluctuate or result in unprofitable projects, thereby affecting business performance.」
Profit fluctuations and projects becoming unprofitable due to changes in requirements, work hours and subcontracting costs after orders are received are treated as major risks.