Changes in Revenue Recognition Methods Following Adoption of the Revenue Recognition Accounting Standard
First written in FY2022-Q1. 3 of 4 entries say "Advanced", first in FY2022-Q2. Latest entry: FY2022.
3 other companies' latest entry also says "Advanced".
- FY2022AdvancedAnnual report
「As a result, in the consolidated income statement for the current fiscal year, net sales decreased by ¥111 million, cost of sales increased by ¥3 million, selling, general and administrative expenses decreased by ¥108 million, and operating income, ordinary income and profit before income taxes decreased by ¥7 million each.」
The company applied the Revenue Recognition Standard for the full fiscal year and specifically disclosed its annual impact on net sales, expenses and profit. - FY2022-Q3AdvancedAnnual report
「As a result, for the cumulative third quarter of the current fiscal year, net sales increased by ¥63 million, cost of sales increased by ¥79 million, selling, general and administrative expenses decreased by ¥82 million, and operating income, ordinary income and profit before income taxes increased by ¥67 million each. In addition, the balance of retained earnings at the beginning of the fiscal year decreased by ¥64 million.」
For the application of the Revenue Recognition Standard, the company has specifically disclosed the amounts of its impact on net sales, expenses, profit and retained earnings for the cumulative third quarter. - FY2022-Q2AdvancedAnnual report
「As a result, for the cumulative second quarter of the current fiscal year, net sales decreased by ¥23 million, cost of sales increased by ¥23 million, selling, general and administrative expenses decreased by ¥56 million, and operating income, ordinary income and profit before income taxes increased by ¥9 million each. In addition, the balance of retained earnings at the beginning of the fiscal year decreased by ¥64 million.」
For the Revenue Recognition Standard applied from the first quarter, the company has specifically disclosed the amounts of its impact on net sales, expenses, profit and retained earnings for the cumulative second quarter. - FY2022-Q1First statedAnnual report
「The company applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan 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 amount expected to be received in exchange for promised goods or services when control of those goods or services is transferred to the customer. As a result, revenue from merchandise and products, which was previously recognized when shipped, is now recognized when received by the customer. In addition, franchise entrance fees at Italian Tomato Co., Ltd., which were previously recognized when received, are now recognized over a specified period, reflecting the provision of know-how for operating stores to customers over that period.」
The company applied the Revenue Recognition Standard and other standards from the beginning of the first quarter and changed the timing of recognizing merchandise sales, as well as the revenue recognition methods for franchise entrance fees and the points program.