Adoption of the Revenue Recognition Standard and Deferral of Point-Related Revenue
First written in FY2023-Q1. 4 of 5 entries say "Restated". Latest entry: FY2024.
24 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「The Company identifies points awarded to BUYMA service members in connection with purchases as performance obligations, allocates the transaction price based on the standalone selling price calculated after taking into account expected future expirations and other factors, and recognizes revenue when the points are used.」
Based on the Revenue Recognition Standard, the Company continued to defer revenue recognition by treating points as performance obligations. - FY2023RestatedAnnual report
「As a result, net sales for the fiscal year decreased by ¥175.896 million, selling, general and administrative expenses decreased by ¥189.531 million, and operating income, ordinary income and profit before income taxes increased by ¥13.635 million each.」
Following the application of the Revenue Recognition Standard, the Company continued to defer revenue recognition by treating points as performance obligations and disclose the resulting impact. - FY2023-Q3RestatedAnnual report
「As a result, net sales for the cumulative third quarter decreased by ¥128.776 million, selling, general and administrative expenses decreased by ¥147.154 million, and operating income, ordinary income and profit before income taxes increased by ¥18.377 million each.」
Following the application of the Revenue Recognition Standard, the Company continued to defer revenue recognition by treating points as performance obligations and disclosed the amount of the impact on the cumulative third quarter. - FY2023-Q2RestatedAnnual report
「As a result, net sales for the cumulative second quarter decreased by ¥88.544 million, selling, general and administrative expenses decreased by ¥106.907 million, and operating income, ordinary income and profit before income taxes increased by ¥18.362 million each.」
Following the application of the Revenue Recognition Standard, the Company continued to defer revenue recognition by treating points as performance obligations and disclosed the amount of the impact on the cumulative second quarter. - FY2023-Q1First statedAnnual report
「The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020; hereinafter, the "Revenue Recognition Standard") and other standards from the beginning of the first quarter of the current fiscal year. 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, the Company recorded the costs expected to be incurred in the future to exchange points as an allowance for point-related expenses, and recorded the provision for the allowance as sales promotion expenses under selling, general and administrative expenses. However, when the points provide customers with a material right, the Company identifies them as a performance obligation, defers revenue recognition, deducts the amount from net sales, and records it as a contract liability.」
Upon applying the Revenue Recognition Standard from the beginning of the first quarter of the current fiscal year, the Company changed its accounting treatment to identify points as performance obligations and defer revenue recognition. As a result, net sales for the quarter decreased by ¥41.650 million, while operating income and other measures increased by ¥12.495 million.