Revenue Recognition Risk Associated with Complex Performance Obligation Determinations for AI Services

「For AI services in particular, the performance obligations differ from transaction to transaction. Through the establishment and operation of internal controls, the Company identifies performance obligations and recognises revenue according to the form of each contract and the substance of each transaction. However, determining whether the revenue amount under each contract is appropriately recorded as the performance obligation is satisfied in accordance with the revenue recognition standard requires complex accounting judgements when recognising revenue that reflects the substance of each transaction. If, for any reason, these judgements cannot be made appropriately, the Company's operating performance and financial position may not be accurately ascertained.」