Recognition of a Provision for Points in Connection with the Switch to a New Point Card
First written in FY2020-Q1. 10 of 13 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2021: 1 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Regarding the points program operated by the company group, the company identifies the points granted to customers in connection with product sales as performance obligations, allocates the transaction price based on the stand-alone selling price calculated after taking into account expected future expirations and other factors, and recognizes revenue when the points are used or expire.」
The company continues the accounting treatment, following the application of the Revenue Recognition Accounting Standard, of identifying points as performance obligations and allocating the transaction price. - FY2025RestatedAnnual report
「Regarding the points program operated by the company, the company identifies the points granted to customers in connection with product sales as performance obligations, allocates the transaction price based on the stand-alone selling price calculated after taking into account expected future expirations and other factors, and recognizes revenue when the points are used or expire.」
The company continues the accounting treatment, following the application of the Revenue Recognition Accounting Standard, of identifying points as performance obligations and allocating the transaction price. - FY2023-Q3RestatedAnnual report
「As a result, regarding the points program operated by the company, the company previously recognized revenue when sales were made, recognized the amount of points granted that was expected to be used in the future as a provision for loyalty points, and recognized the provision expense as a deduction from revenue. The company has changed to a method under which the points granted are identified as a performance obligation and the transaction price is allocated based on the stand-alone selling price calculated after taking into account expected future expirations and other factors.」
Even after applying the Revenue Recognition Accounting Standard, the company continues to identify points as performance obligations and allocate the transaction price. The provision for loyalty points is presented as part of contract liabilities. - FY2023-Q2RestatedAnnual report
「The company applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Accounting Standard”) and other standards from the beginning of the first quarter of the current consolidated fiscal year, and recognizes revenue at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. As a result, regarding the points program operated by the company, the company previously recognized revenue when sales were made, recognized the amount of points granted that was expected to be used in the future as a provision for loyalty points, and recognized the provision expense as a deduction from revenue. The company has changed to a method under which the points granted are identified as a performance obligation and the transaction price is allocated based on the stand-alone selling price calculated after taking into account expected future expirations and other factors. In addition, for transactions in which the company acts as an agent in providing goods or services to customers, the company previously recognized the total consideration received from customers as revenue, but has changed to recognizing revenue at the net amount after deducting the amount paid to other parties from the total consideration.」
The company continues to identify points as performance obligations and allocate the transaction price, and to present agent transactions on a net basis under the Revenue Recognition Accounting Standard applied from the first quarter. On a cumulative second-quarter basis, revenue and cost of sales decreased by ¥815 million, with no impact on operating profit or other profit figures. - FY2023-Q1ReframedAnnual report
「As a result, regarding the points program operated by the company, the company previously recognized revenue when sales were made, recognized the amount of points granted that was expected to be used in the future as a provision for loyalty points, and recognized the provision expense as a deduction from revenue. The company has changed to a method under which the points granted are identified as a performance obligation and the transaction price is allocated based on the stand-alone selling price calculated after taking into account expected future expirations and other factors. In addition, for transactions in which the company acts as an agent in providing goods or services to customers, the company previously recognized the total consideration received from customers as revenue, but has changed to recognizing revenue at the net amount after deducting the amount paid to other parties from the total consideration.」
Following the adoption of the new revenue recognition standard, the company changed to allocating consideration to points as performance obligations and moved from recognizing a provision for loyalty points to presentation including contract liabilities. - FY2022RestatedAnnual report
「To cover the use of points granted to customers through the points card, the company recognizes the amount expected to be used in the future based on historical usage.」
The company continues the method of recognizing a provision for loyalty points introduced following the transition to the new points card. The balance of the provision for loyalty points, including both current and non-current portions, amounted to ¥1,876 million. - FY2021RestatedAnnual report
「To cover the use of points granted to customers through the points card, the company recognizes the amount expected to be used in the future based on historical usage.」
The company continues the method of recognizing a provision for loyalty points introduced following the transition to the new points card. The impact of the transition in the previous year has ceased to be a factor affecting profit for the current fiscal year. - FY2021-Q3RestatedAnnual report
「In addition to the disappearance of the impact of the provision for loyalty points associated with last year’s transition to the new points card,」
The company continues to explain that the negative impact on profit from the previous year’s transition to the new points card has disappeared. - FY2021-Q2The impact of the previous year’s provision for loyalty points disappearedAnnual report
「The gross margin was boosted, among other factors, by the disappearance of the impact of the provision for loyalty points associated with last year’s transition to the new points card, and」
The company states that although the accounting treatment for the provision for loyalty points introduced following the transition to the new points card has continued, the negative impact on profit at the time of the transition in the previous fiscal year has disappeared. - FY2020RestatedAnnual report
「Regarding the accounting treatment for points, following the transition to the company’s new points card, it became possible to reasonably estimate the amount expected to be used in the future. Accordingly, from the current consolidated fiscal year, the company has recognized the amount expected to be used in the future as a provision for loyalty points. As a result, revenue, gross profit, operating profit, ordinary profit and net income before income taxes and other adjustments each decreased by ¥1,169 million.」
The company continued to recognize a provision for loyalty points following the transition to the new points card for the full fiscal year, and the impact on each of the relevant profit figures and other items amounted to ¥1,169 million. - FY2020-Q3RestatedAnnual report
「Regarding the accounting treatment for points, following the transition to the company’s new points card, it became possible to reasonably estimate the amount expected to be used in the future. Accordingly, from the first quarter of the current fiscal year, the company has recognized the amount expected to be used in the future as a provision for loyalty points. As a result, revenue, gross profit, operating profit, ordinary profit and quarterly net income before income taxes and other adjustments each decreased by ¥939 million.」
The company continued to recognize a provision for loyalty points following the transition to the new points card, and stated that each of the relevant profit figures and other items decreased by ¥939 million on a cumulative third-quarter basis. - FY2020-Q2RestatedAnnual report
「Regarding the accounting treatment for points, following the transition to the company’s new points card, it became possible to reasonably estimate the amount expected to be used in the future. Accordingly, from the first quarter of the current fiscal year, the company has recognized the amount expected to be used in the future as a provision for loyalty points. As a result, revenue, gross profit, operating profit, ordinary profit and quarterly net income before income taxes and other adjustments each decreased by ¥736 million.」
The company continued to recognize a provision for loyalty points following the transition to the new points card, and stated that each of the relevant profit figures and other items decreased by ¥736 million on a cumulative second-quarter basis. - FY2020-Q1First statedAnnual report
「Regarding the accounting treatment for points, following the transition to the company’s new points card, it became possible to reasonably estimate the amount expected to be used in the future. Accordingly, from the first quarter of the current fiscal year, the company has recognized the amount expected to be used in the future as a provision for loyalty points. As a result, revenue, gross profit, operating profit, ordinary profit and quarterly net income before income taxes and other adjustments each decreased by ¥482 million.」
Following the transition to the new points card, the company began recognizing the amount expected to be used in the future as a provision for loyalty points. In the first quarter, each of the relevant profit figures and other items decreased by ¥482 million.