Unprofitability in System Development Projects
First written in FY2021. 3 of 5 entries say "Restated". Latest entry: FY2026-H1.
Global Communication Planning moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Inventories related to contracts for the commissioned development of software for which losses are expected, and provision for loss on orders, are presented separately without offsetting.」
For a contract for the commissioned development of software expected to incur a loss, the Company recorded a provision for loss on orders of ¥829 thousand and corresponding work in progress of ¥5,135 thousand in the current interim accounting period. The risk of unprofitable projects was reflected in the actual accounting treatment. - FY2025RestatedAnnual report
「However, if an unprofitable project arises due to factors that could not have been anticipated when the order was received, such as major specification changes during development or work hours increasing beyond the initial estimate, it could affect our business and performance.」
It continues to identify the risk of projects becoming unprofitable due to specification changes and increased work hours, together with measures such as quality control and project reviews. - FY2023RestatedAnnual report
「However, if an unprofitable project arises due to factors that could not have been anticipated when the order was received, such as major specification changes during development or work hours increasing beyond the initial estimate, it could affect our business and performance.」
It continues to identify the risk of projects becoming unprofitable due to specification changes and increased work hours, together with measures such as quality control and project reviews. - FY2022RestatedAnnual report
「However, if an unprofitable project arises due to factors that could not have been anticipated when the order was received, such as major specification changes during development or work hours increasing beyond the initial estimate, it could affect our business and performance.」
It continues to identify the risk of unprofitable projects due to specification changes and increased work hours, along with responses involving delivery schedule, quality and cost management. - FY2021First statedAnnual report
「If an unprofitable project arises due to factors that could not have been anticipated when the order was received, such as major specification changes during development or work hours increasing beyond the initial estimate, it could affect our business and performance.」
It identifies the risk of projects becoming unprofitable due to specification changes, increased work hours, missed delivery deadlines, additional costs and other factors.