Changes in Acceptance Timing and Risk of Projects Becoming Loss-Making
First written in FY2016. 3 of 6 entries say "Materialised", first in FY2019. Latest entry: FY2023.
CHANGE Holdings moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 7 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2023Update to the balance of the provision for order-related lossesAnnual report
「Provision for loss on orders 1」
A provision for loss on orders of ¥1 million was recorded at the end of the current consolidated fiscal year for future losses related to order contracts. - FY2020MaterialisedAnnual report
「A provision for loss on orders is recognized for contracts for which future losses are expected and can be reasonably estimated among the order contracts outstanding at the end of the current consolidated fiscal year, with the estimated losses from the following consolidated fiscal year onward recorded to prepare for future losses related to order contracts.」
Future losses of ¥5.716 million related to order contracts were recorded as a provision for loss on orders, indicating that the project profitability risk continues to materialize. - FY2020-Q2MaterialisedAnnual report
「However, the COVID-19 pandemic resulted in negative effects from restrictions and stagnation in economic activity, causing delays in acceptance for some projects and postponements and cancellations of group training sessions.」
The changes in acceptance timing and impact on project progress previously identified as risks actually materialized as acceptance delays and training postponements and cancellations associated with the spread of infection. - FY2019MaterialisedAnnual report
「Highly difficult projects requiring individual attention have arisen more frequently than anticipated, and the transition to a model in which projects can be sold through with minimal follow-up has taken time.」
The company describes the existing risk concerning project standardization and profitability as an actual operational issue, as highly difficult projects requiring individual attention have arisen more frequently than anticipated. - FY2017RestatedAnnual report
「As a result, labor hours may expand and project profitability may deteriorate due to unforeseen circumstances not anticipated when estimates were prepared. This could affect our performance, particularly for large-scale projects.」
The company continues to identify as risks fluctuations in sales due to changes in acceptance timing and deteriorating project profitability due to deviations from estimated labor hours. - FY2016First statedAnnual report
「Depending on project progress, delivery dates may change. In such cases, depending on the customer's acceptance timing, our sales may fluctuate if acceptance falls in a different fiscal year, which could affect our performance.」
The company identifies as risks changes in the timing of revenue recognition based on customer acceptance criteria and deteriorating project profitability due to deviations from estimated labor hours.