Adoption of the Revenue Recognition Standard for the Fiscal Year Ending May 2022
First written in FY2021. 1 of 3 entries say "Achieved", first in FY2022-Q1. Latest entry: FY2022-Q3.
82 other companies' latest entry also says "Other".
- FY2022-Q3Updated impact of adopting the revenue recognition standardAnnual report
「Following the application of the accounting standard and related standards on revenue recognition, “notes and accounts receivable—trade,” previously presented under “current assets” on the consolidated balance sheet for the previous consolidated fiscal year, has been presented from the first quarter of the current consolidated accounting period within “notes and accounts receivable—trade and contract assets.” In accordance with the transitional treatment prescribed in Paragraph 89-2 of the revenue recognition accounting standard, the previous consolidated fiscal year has not been reclassified using the new presentation method. In addition, in accordance with the transitional treatment prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly Financial Statements (ASBJ Statement No. 12, 31 March 2020), disaggregated information on revenue arising from contracts with customers for the cumulative third quarter of the previous consolidated fiscal year has not been presented.」
Following application of the revenue recognition accounting standard, the company continues to disclose presentation methods including line items containing contract assets and the omission of disaggregated revenue information for the same period of the previous year. In the third quarter, the application reduced revenue by ¥53.376 million and operating profit and other items by ¥122.835 million, while increasing retained earnings at the beginning of the period by ¥141.510 million. - FY2022-Q1AchievedAnnual report
「We applied the accounting standard and related standards on revenue recognition from the beginning of the first quarter of the current consolidated accounting period. Revenue is recognized at the point 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. As a result, revenue for the cumulative first quarter increased by ¥817.323 million, cost of sales increased by ¥821.820 million, and the reversal of the provision for returns adjustments under the previous method decreased by ¥1.192 million. Accordingly, gross profit decreased by ¥5.689 million, selling, general and administrative expenses decreased by ¥6.597 million, and operating profit, ordinary profit and profit before income taxes increased by ¥908,000 each. Retained earnings at the beginning of the current fiscal year also increased by ¥141.510 million.」
The accounting standard and related standards on revenue recognition, which had been scheduled for application from the fiscal year ending May 2022, were actually applied from the beginning of the current first quarter. This changed the recognition methods for video production to recognition over a certain period based on the degree of completion, for publishing to recognition of return assets and refund liabilities, and for rights to methods based on the nature of the licenses, affecting the reported results. - FY2021First statedAnnual report
「(2) Scheduled application date The standard will be applied from the beginning of the fiscal year ending May 2022. (3) Impact of applying the accounting standard and related standards The increase in retained earnings at the beginning of the period is expected to be approximately ¥150 million.」
The accounting standard and related standards on revenue recognition will be applied from the beginning of the fiscal year ending May 2022, with an estimated increase of approximately ¥150 million in retained earnings at the beginning of the period.