Process Estimates and Cost Overruns in Contract-Based Development
First written in FY2016. 7 of 17 entries say "Materialised", first in FY2017. Latest entry: 2026-08-12.
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- 2026-08-12MaterialisedEarnings
「Provision for loss on orders — 7」
The provision for loss on orders increased from zero at the end of the previous consolidated fiscal year to ¥7 million at the end of the first quarter, again confirming the financial recognition of risks related to process estimates and cost overruns. - FY2026MitigatedAnnual report
「Provision for loss on orders －」
The ¥46 million provision for loss on orders recognized in the previous fiscal year was not recognized in the current fiscal year, reducing the amount financially reflected for the risks associated with project estimates and cost overruns in contract development. - 2026-05-13MitigatedEarnings
「Provision for loss on orders 46 —」
The provision for loss on orders declined from ¥46 million at the end of the previous consolidated fiscal year to zero at the end of the current consolidated fiscal year. - FY2026-H1MitigatedAnnual report
「Provision for loss on orders ¥46 million ¥7 million」
The provision for loss on orders decreased from ¥46 million at the end of the previous consolidated fiscal year to ¥7 million at the end of the current interim consolidated fiscal period, reducing the amount recognized financially for the risks associated with project estimates and cost overruns. - FY2025MaterialisedAnnual report
「Provision for loss on orders ¥46 million」
The Company recognized a ¥46 million provision for loss on orders, despite having recognized none in the previous fiscal year, and the risks associated with project estimates and cost overruns were reflected in the current fiscal year's financial figures. - FY2024RestatedAnnual report
「Given the nature of its operations, the Group may also undertake projects involving system development, and such engagements entail similar risks.」
The risks of cost overruns, delays, and damages claims arising from errors in project estimates, and the response measures involving organizational knowledge such as ULBOK and contract segmentation, were reconfirmed. - FY2023RestatedAnnual report
「Given the nature of its operations, the Group may also undertake projects involving system development, and such engagements entail similar risks.」
The risks of cost overruns, delays, and damages claims arising from errors in project estimates were reiterated, along with measures involving project selection and contract segmentation. - FY2022RestatedAnnual report
「At the end of the current consolidated fiscal year, no provision for loss on orders was recognized because there were no applicable projects.」
Although the Company disclosed that there were no applicable projects for a provision for loss on orders at the end of the current fiscal year, it continued to describe the risks associated with project estimates and cost overruns themselves. - FY2021MitigatedAnnual report
「At the end of the current consolidated fiscal year, no provision for loss on orders was recognized because there were no applicable projects.」
Although a ¥370 thousand provision for loss on orders was recognized in the previous fiscal year and ¥262 thousand was recognized at the end of the third quarter of the previous fiscal year, no applicable projects remained at the end of the current fiscal year, and no provision was recognized. - FY2021-Q3MaterialisedAnnual report
「Provision for loss on orders － ¥262 thousand」
A ¥262 thousand provision for loss on orders, which had not been recognized at the end of the previous consolidated fiscal year, was recognized at the end of the third quarter of the current fiscal year. The risks associated with project estimates and cost overruns in contract development were reflected in the financial figures. - FY2021-Q2MaterialisedAnnual report
「Provision for contract losses − ¥139 thousand」
A ¥139 thousand provision for loss on orders, which had not been recognized at the end of the previous consolidated fiscal year, was recognized at the end of the second quarter of the current fiscal year. The risks associated with project estimates and cost overruns in contract development were reflected in the financial figures, albeit on a small scale. - FY2020MitigatedAnnual report
「At the end of the current consolidated fiscal year, no provision for loss on orders was recognized because there were no applicable projects.」
Although a ¥370 thousand provision for loss on orders had been recognized in the previous fiscal year, no applicable projects remained at the end of the current fiscal year, and no provision was recognized. - FY2019MaterialisedAnnual report
「Provision for loss on orders － ¥370 thousand」
The Company recognized a ¥370 thousand provision for loss on orders during the current consolidated fiscal year, reflecting the risks associated with project estimates and cost overruns in the financial figures, albeit on a small scale. It stated, however, that no significant low-margin projects had arisen. - FY2018RestatedAnnual report
「The Group is also constantly exposed to these risks and was forced to recognize losses on multiple projects in prior years.」
The risks of cost overruns, work delays, and damages claims arising from errors in project estimates were reiterated. The Company also described project selection and contract segmentation using ULBOK know-how, while stating that it is difficult to avoid all risks. - FY2018-Q2MaterialisedAnnual report
「While maintaining high utilization supported by solid orders, the Company was affected by an increase in the provision for loss on orders. Operating profit and ordinary profit for the six months ended [the second quarter] of the current fiscal year were ¥350.640 million, down 2.0% year on year, and ¥351.495 million, down 2.0%, respectively.」
The provision for loss on orders increased from ¥34.829 million at the end of the previous consolidated fiscal year to ¥60.113 million, and was described as an actual factor behind the decline in profit. - FY2017MaterialisedAnnual report
「Provision for loss on orders ¥34.829 million」
At the end of the current consolidated fiscal year, the Company recognized a ¥34.829 million provision for loss on orders for projects expected to incur losses. The risks associated with project estimates and cost overruns were reflected in the financial figures as expected losses. - FY2016First statedAnnual report
「The Group is also constantly exposed to these risks and was forced to recognize losses on multiple projects in prior years.」
Risks of cost overruns, delays, and damages claims associated with contract development agreements entered into before requirements are finalized. Prior-year loss recognition was cited as an actual occurrence.