Variability in Revenue Recognition Timing Due to Construction Delays and Selling Companies’ Sales Conditions
First written in FY2016. 4 of 13 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2026.
Urbanet Corporation moved to the "Worse" side of this theme in 2020, 6 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 4 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「This was because the Group completed all projects scheduled for the consolidated fiscal year.」
The Group explained that it completed and delivered all projects scheduled for the fiscal year through long-term relationships of trust with contractors and effective schedule management. - FY2025MitigatedAnnual report
「This was because the Company's strong commitment to high-quality construction in its urban rental apartment development business has earned high regard not only in the studio apartment sector but also across the real estate market, including among major real estate companies, and because it has built long-term relationships of trust with contractors. Through repeated close discussions and other measures, the Company thoroughly managed construction schedules and completed and delivered all projects scheduled for the current consolidated fiscal year.」
Explains that discussions with contractors and construction schedule management enabled the completion and delivery of all projects scheduled for the current fiscal year, demonstrating its response to the risk of fluctuations in delivery timing. - FY2024MaterialisedAnnual report
「In response to the recent trend toward longer construction periods in the construction industry, the Company thoroughly managed construction schedules through close discussions with contractors and other measures. As a result, the project comprising 1 building and 57 units that had been scheduled for recognition in the fiscal year ending June 2025 was recognized in the current consolidated fiscal year.」
Fluctuations in the timing of revenue recognition due to construction periods and schedule management actually occurred, and 1 building comprising 57 units scheduled for the following fiscal year was recognized earlier, in the current fiscal year. - FY2023RestatedAnnual report
「For the fiscal year ended June 2023, the sales plan for investment studio apartments called for 11 buildings comprising 586 units, while actual results were 11 buildings comprising 584 units, broadly in line with the plan.」
Discloses planned and actual sales and reconfirms the management of the timing of recognition, including fluctuations in performance due to the timing of deliveries and sales. - FY2023-Q1MaterialisedAnnual report
「Revenue and profit both declined significantly, partly because 1 project scheduled for revenue recognition in the consolidated first quarter was pushed back to the consolidated second quarter.」
Revenue recognition for 1 project scheduled for the first quarter was pushed back to the second quarter, affecting revenue and profit. - FY2022MaterialisedAnnual report
「At the beginning of the fiscal year, revenue recognition had been scheduled for 12 buildings comprising 727 units. However, because delivery of 1 building comprising 69 units scheduled for revenue recognition during the current consolidated fiscal year was delayed, revenue recognition is now scheduled for the fiscal year ending June 2023.」
Delivery of 1 building comprising 69 units scheduled for revenue recognition was pushed back to the following fiscal year, and the risk of fluctuations in performance due to the timing of property deliveries materialized. - FY2022-Q3MaterialisedAnnual report
「Although revenue and profit declined year on year, this was mainly because, in addition to there having been a large number of projects, including high-margin projects, for which revenue was recognized in the cumulative third quarter of the previous fiscal year, projects acquired for resale that had been scheduled for revenue recognition in the consolidated third quarter were pushed back to the consolidated fourth quarter.」
Revenue recognition for projects acquired for resale that had been scheduled for the third quarter was pushed back to the fourth quarter, and the risk of fluctuations in the timing of revenue recognition due to construction schedules, sales conditions and other factors materialized. - FY2020WorsenedAnnual report
「Accordingly, if delivery is delayed beyond the fiscal year-end because of construction delays caused by adverse weather, natural disasters, the spread of infectious diseases, construction labor shortages or other factors, this may affect the performance of the Group.」
In addition to the previously cited adverse weather, natural disasters and labor shortages, identifies the spread of infectious diseases as a factor that may delay construction and cause fluctuations in the timing of revenue recognition. - FY2018RestatedAnnual report
「In the Group's real estate development business, revenue is recognized upon delivery of the property. Accordingly, if delivery is delayed beyond the fiscal year-end because of construction delays caused by adverse weather, natural disasters, construction labor shortages or other factors, this may affect the performance of the Group.」
Reconfirms the risk of fluctuations in the timing of revenue recognition based on the delivery criterion and construction delays. - FY2017RestatedAnnual report
「Revenue is recognized upon delivery of the property. Accordingly, if delivery is delayed beyond the fiscal year-end because of construction delays caused by adverse weather, natural disasters, construction labor shortages or other factors, this may affect the performance of the Group.」
Reiterates the risk of fluctuations in the timing of revenue recognition based on the delivery criterion and construction delays. - FY2016First statedAnnual report
「In the Group's real estate development business, revenue is recognized upon handover of properties. Accordingly, if construction is delayed beyond the fiscal year-end because of adverse weather, natural disasters, labor shortages at construction companies or other factors, the timing of handover may be delayed, which could affect the Group's performance. In addition, sales contracts with sales companies are settled four months after completion and handover, although settlement on an individual-unit basis is permitted. As the Group has no control over the number of units recognized under sales contracts spanning the fiscal year-end, the sales performance of sales companies could affect the Group's performance.」
The Group identifies the handover-based recognition policy, settlement four months later and the number of units recognized across fiscal year-ends as factors that could cause fluctuations in performance.