Adoption of the Revenue Recognition Accounting Standard and Changes in the Treatment of Points, Returns, and Other Items

「The Accounting Standard for Revenue Recognition (Accounting Standard No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Accounting Standard”) and other standards have been applied from the beginning of the first quarter of the current consolidated fiscal year. Revenue is recognised 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.」

「The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, 31 March 2020) and related standards have been applied from the beginning of the current first-quarter consolidated accounting period. Revenue is recognized 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. Previously, points awarded under the Company’s loyalty points program based on members’ purchase amounts and other factors were recorded as a current liability under “provision for points” at the amount expected to be used in the future, with the provision expense recorded in selling, general and administrative expenses. The treatment has been changed so that the points awarded are identified as performance obligations and deducted from net sales, taking into account expected future expiries and other factors.」