Ratable Recognition of Maintenance Revenue Following Early Adoption of the Revenue Recognition Accounting Standard
First written in FY2021-Q1. 2 of 5 entries say "Advanced", first in FY2021-Q2. Latest entry: FY2022-Q1.
3 other companies' latest entry also says "Restated".
- FY2022-Q1RestatedAnnual report
「This was mainly attributable to subscription revenue remaining strong and maintenance revenue recognized during the nine-month cumulative period of the current first quarter increasing by ¥91 million year on year as a result of the change in accounting policy implemented in the previous consolidated fiscal year.」
The Company stated that maintenance revenue recognized during the quarter increased by ¥91 million year on year as a result of the change in the revenue recognition method implemented in the previous fiscal year. - FY2021AdvancedAnnual report
「As a result, revenue for the current consolidated fiscal year decreased by ¥176.492 million, and operating income, ordinary income and profit before income taxes also decreased by the same amount. There was no impact on the opening balance of retained earnings.」
The Company disclosed the full-year impact of applying the revenue recognition accounting standard and changing from recognition in full at contract commencement to recognition over a specified period, stating that revenue, operating income and other items decreased by ¥176.492 million. - FY2021-Q3RestatedAnnual report
「In addition, revenue from certain maintenance services had previously been recognized in full when the contract commenced. However, where customers receive the benefits as the performance obligations under maintenance contracts are satisfied, the Company has changed to recognizing revenue over a specified period. As a result, revenue for the nine-month cumulative period of the current third quarter decreased by ¥192.833 million, and operating income, ordinary income and profit before income taxes also decreased by the same amount. There was no impact on the opening balance of retained earnings.」
The impact of changing maintenance revenue recognition from recognition in full at contract commencement to recognition over a specified period continued, reducing revenue, operating income and other items by ¥192.833 million for the nine-month cumulative period. - FY2021-Q2AdvancedAnnual report
「For revenue from certain maintenance services, the company previously recognized revenue when the contract began, but changed to recognizing revenue over a specified period when customers receive the benefits as the performance obligation under the maintenance contract is satisfied. As a result, revenue for the second quarter of the current consolidated cumulative period decreased by ¥176.488 million, cost of sales increased by ¥724 thousand, and operating income, ordinary income, and profit before income taxes each decreased by ¥177.212 million. There was no impact on the opening balance of retained earnings for the current period.」
Application of the revenue recognition accounting standard changed maintenance revenue recognition from a lump-sum entry at contract commencement to recognition over a specified period. For the second quarter cumulative period, the company disclosed a ¥176.488 million decrease in revenue and a ¥177.212 million decrease in operating income and other profit measures. - FY2021-Q1First statedAnnual report
「Beginning with the first quarter of the current consolidated cumulative period, the company early adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, 31 March 2020) and changed its accounting policy. As a result, certain maintenance revenue previously recognized in full when a contract began is now recognized evenly over the contract period from the first quarter of the current consolidated accounting period. This reduced revenue for the first quarter of the current consolidated cumulative period by ¥135 million compared with the previous accounting policy, but the same amount will be recognized as revenue from the second quarter of the current consolidated cumulative period through the fiscal year ending March 2022. The decline in maintenance revenue resulting from the accounting policy change is temporary and is expected to be largely resolved by the end of the fiscal year ending March 2022. Total maintenance orders increased 3.2% year on year.」
The company early adopted the revenue recognition accounting standard and changed the method for recognizing certain maintenance revenue to even recognition over the contract period. First-quarter revenue decreased by ¥135 million, but the same amount is expected to be recognized from the second quarter through the fiscal year ending March 2022, largely resolving the impact by the end of that fiscal year. Total orders increased 3.2% year on year.