Change in contract-order revenue recognition to a progress-based method following adoption of the new revenue recognition standard
First written in FY2021. 4 of 6 entries say "Restated". Latest entry: FY2025.
91 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Revenue from these construction contracts and other agreements is recognized over a period of time as the performance obligations are satisfied. The method used to estimate the percentage of completion is primarily an input method based on costs incurred.」
The company continues to apply revenue recognition based on project progress and an input method based on costs incurred to the contract-ordering scheme. - FY2023RestatedAnnual report
「Revenue from these construction contracts and other agreements is recognized over a period of time as the performance obligations are satisfied. The method used to estimate the percentage of completion is primarily an input method based on costs incurred.」
The company continues to apply progress-based revenue recognition and an input method based on costs incurred to the contract-ordering scheme. - FY2022-Q3RestatedAnnual report
「As a result, net sales for the first 3 quarters of the current consolidated fiscal period increased by ¥626.588 million, cost of sales increased by ¥541.626 million, and gross profit increased by ¥84.962 million. Operating loss, ordinary loss and loss before income taxes for the quarter each decreased by ¥84.962 million.」
The company continued to apply progress-based revenue recognition to the contract-ordering scheme and disclosed the impact on the cumulative period through the third quarter. - FY2022-Q2RestatedAnnual report
「From the beginning of the first quarter of the current consolidated fiscal period, the company has changed its method of recognizing various types of revenue under the contract-ordering scheme. Instead of the previous completion-and-handover basis, it applies the revenue recognition accounting standard and recognizes revenue according to the nature of the work and the progress of each project.」
The progress-based revenue recognition method applied from the first quarter continued in the second quarter. The company disclosed the cumulative impact as a ¥710.300 million increase in net sales and a ¥132.855 million increase in gross profit. - FY2022-Q1AdvancedAnnual report
「From the beginning of the first quarter of the current consolidated fiscal period, the company has changed its method of recognizing various types of revenue under the contract-ordering scheme. Instead of the previous completion-and-handover basis, it applies the revenue recognition accounting standard and recognizes revenue according to the nature of the work and the progress of each project.」
The new revenue recognition standard announced for FY2021 was actually applied from the beginning of FY2022-Q1, and the company transitioned to recognizing planning, design and construction revenue under the contract-ordering scheme according to the nature of the work and project progress. - FY2021First statedAnnual report
「Revenue from the contract-ordering scheme was recognized upon completion and handover of a property through the fiscal year ended November 2021 because the company used the completion-and-handover basis. However, following the adoption of the new revenue recognition standard from the beginning of the fiscal year ending November 2022, revenue will be recognized according to the progress of each project.」
The company first disclosed its accounting policy of changing revenue recognition for the contract-ordering scheme from the completion-and-handover basis to recognition based on project progress.