Matching return losses to the relevant period through recognition of a provision for returns
First written in FY2018-Q2. 4 of 6 entries say "Restated". Latest entry: FY2023-Q2.
The whole theme swung hardest in 2025: 2 of 9 companies on the "Worse" side.
48 other companies' latest entry also says "Restated".
- FY2023-Q2RestatedAnnual report
「For sales with a right of return, the company had recognized as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales during the current consolidated fiscal year, in preparation for losses from returns. However, it has changed to a method of deducting the amount from revenue and recognizing an equivalent refund liability.」
Since adopting the revenue recognition standard, the company has continued to use the method of deducting the amount from revenue and recognizing a refund liability instead of recognizing a provision for returns. - FY2023-Q1ReframedAnnual report
「For sales with a right of return, the company had recognized as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales during the current consolidated fiscal year, in preparation for losses from returns. However, it has changed to a method of deducting the amount from revenue and recognizing an equivalent refund liability.」
With the adoption of the revenue recognition standard, the company changed from its previous method of recognizing a provision for returns to a method of deducting the amount from revenue and recognizing a refund liability. - FY2019RestatedAnnual report
「The company recognizes as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales made during the current fiscal year.」
The company continues to apply an accounting policy of recognizing expected return losses in subsequent periods as a provision for returns. - FY2018RestatedAnnual report
「Previously, losses associated with returns were recognized when the returns were received. However, to achieve more appropriate period-based profit and loss accounting, from the current fiscal year the company changed to a method of recognizing as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales made during the current fiscal year.」
The company continues to disclose the change to an accounting policy of recognizing return losses as a provision for returns as its accounting policy for the current fiscal year. - FY2018-Q3RestatedAnnual report
「Previously, losses associated with returns were recognized when the returns were received. However, to achieve more appropriate period-based profit and loss accounting, from the first-quarter accounting period the company changed to a method of recognizing as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales made during the current fiscal year.」
The notes continue to disclose that the company changed its accounting policy from the first-quarter accounting period to recognize a provision for returns. - FY2018-Q2First statedAnnual report
「Previously, losses associated with returns were recognized when the returns were received. However, to achieve more appropriate period-based profit and loss accounting, from the first-quarter accounting period the company changed to a method of recognizing as a provision for returns the losses expected to arise from returns in subsequent periods attributable to sales made during the current fiscal year.」
From the first-quarter accounting period, the company changed its accounting policy to recognize expected return losses in subsequent periods as a provision for returns. The impact on profit and loss was described as immaterial.