Changes in Accounting Treatment for Points, Returns and Other Items Following Adoption of the Revenue Recognition Standard
First written in FY2022-Q1. 3 of 4 entries say "Advanced", first in FY2022-Q2. Latest entry: FY2022.
The whole theme swung hardest in 2024: 1 of 8 companies on the "Worse" side.
8 other companies' latest entry also says "Advanced".
- FY2022AdvancedAnnual report
「Compared with the figures before applying the revenue recognition accounting standard and related standards, net sales in the consolidated statement of income for the fiscal year decreased by ¥3,934 million, cost of sales increased by ¥839 million, and selling, general and administrative expenses decreased by ¥4,705 million. The impact on the consolidated statement of cash flows for the fiscal year was immaterial, and there was no impact on profit before income taxes.」
Disclosed the full-year impact of applying the revenue recognition accounting standard, explaining that line items changed but there was no impact on profit before income taxes. - FY2022-Q3AdvancedAnnual report
「Compared with the previous accounting treatment, during the nine months ended ..., revenue decreased by ¥2,036 million, cost of sales increased by ¥576 million and selling, general and administrative expenses decreased by ¥2,524 million. However, there was no impact on operating profit, ordinary profit or net income attributable to owners of the parent.」
Updated the cumulative impact on line items from applying the revenue recognition accounting standard. Net sales, cost of sales and SG&A expenses changed, but operating profit, ordinary profit and net profit for the quarter attributable to owners of the parent were unaffected. - FY2022-Q2AdvancedAnnual report
「As a result, during the six months ended ..., revenue decreased by ¥1,041 million, cost of sales increased by ¥353 million and selling, general and administrative expenses decreased by ¥1,377 million. However, there was no impact on operating profit, ordinary profit or net income attributable to owners of the parent.」
The cumulative impact following adoption of the revenue recognition standard was disclosed. It explained that although presentation line items were affected, there was no impact on operating profit, ordinary profit or net income attributable to owners of the parent. - FY2022-Q1First statedAnnual report
「The Accounting Standard for Revenue Recognition and other standards were applied from the beginning of the first quarter of the current consolidated fiscal year. Revenue is recognized when control of the promised goods or services is transferred to the customer, at the amount expected to be received in exchange for those goods or services.」
The company changed its accounting treatment to defer revenue recognition by identifying ZOZO points as a material right and recording them as contract liabilities, deducting company-funded coupon points from the transaction price, and recognizing refund liabilities for sales with a right of return. It explained that revenue decreased by ¥419 million, cost of sales increased by ¥164 million and selling, general and administrative expenses decreased by ¥622 million, with no impact on operating profit or other profit measures.