Postponement of Revenue Recognition for Large and Capital Investment Projects
First written in FY2017-Q2. 9 of 22 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2026: 11 of 27 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「In the video equipment rental division, performance remained solid because a large equipment delivery project for a permanent exhibition was booked, while entertainment-related projects, including concerts, also continued to be carried out smoothly.」
The booking of a large equipment delivery project during the interim period and the smooth execution of entertainment-related projects partly eased the impact of revenue recognition for projects being concentrated in the second half. - FY2026-H1MitigatedAnnual report
「In particular, the stronger-than-expected execution of projects toward the interim period-end contributed to year-on-year revenue and profit growth across the segment.」
In the video equipment rental division, projects toward the interim period-end exceeded expectations, contributing to year-on-year revenue and profit growth. The impact of the concentration of projects and revenue recognition in the second half is showing signs of improvement in the current interim period. - FY2024MitigatedAnnual report
「Although performance in the SP (sales promotion) and Events division did not reach the level of the previous consolidated period, it was steady, partly because revenue was recognized from large exhibition and event projects.」
Large-scale exhibition and event projects were recognized in the current fiscal year, partially easing the impact of revenue recognition being weighted toward the second half. However, results did not reach the previous year’s level. - FY2024-Q3MitigatedAnnual report
「Although performance in the SP (sales promotion) and Events division did not reach the level of the previous consolidated period, it was steady, partly because revenue was recognized from large exhibition and event projects.」
Large-scale exhibition and event projects were recognized in the cumulative third-quarter period, partially easing the impact of revenue recognition being weighted toward the second half. However, results did not reach the level of the same period of the previous year. - FY2024-Q2RestatedAnnual report
「In the SP (sales promotion) and events division, orders have been concentrated from the third consolidated accounting quarter onward, resulting in weak performance.」
Orders have been concentrated from the third quarter onward, reaffirming the timing imbalance that has kept sales and results weak through the second quarter. - FY2024-Q1RestatedAnnual report
「In the SP (sales promotion) and events division, orders have been concentrated from the third consolidated accounting quarter onward,」
Orders in the SP and events division have been concentrated from the third quarter onward, continuing to indicate that revenue recognition in the current quarter is weighted toward the second half. - FY2022-Q1MaterialisedAnnual report
「The TV commercial division is continuing to produce TV commercials and other content while implementing measures to prevent COVID-19 infections. However, the challenging business environment continues due to the postponement of shoots and declining advertising demand following declarations of a state of emergency and other measures.」
Declarations of a state of emergency and other measures resulted in the postponement of TV commercial shoots, and events affecting the timing of revenue recognition for production projects continue. - FY2021MaterialisedAnnual report
「In the SP (sales promotion) and events division, results recovered to some extent in the fourth consolidated accounting quarter, partly because delivery acceptance for ordered projects was concentrated in that quarter.」
Delivery acceptance for projects was actually concentrated in the fourth quarter, confirming an imbalance in the timing of revenue and results recognition. - FY2021-Q1MaterialisedAnnual report
「Because TV commercial shoots involve dense gatherings, the company postponed shoots after the declaration of a state of emergency. This affected results through delays in delivering production projects, among other factors, resulting in weak performance.」
In addition to the traditional concentration of revenue recognition for large-scale and seasonal projects, the company stated that postponement of TV commercial shoots actually resulted in delays in delivering production projects. - FY2020RestatedAnnual report
「Orders during the busy season, when many events and exhibitions are held in the third consolidated accounting quarter, also remained strong, enabling the company to increase its results.」
The company reaffirmed the structure in which orders and revenue are concentrated in the second half, with orders and sales increasing during the busy season when many events and exhibitions are held. - FY2020-Q3MitigatedAnnual report
「In the video equipment rental division, as in the SP and events division, the third accounting quarter is the busy season, with many events and exhibitions held, and orders were firm,」
Although sales and orders have traditionally been seasonally concentrated in the second half, orders in the busy third quarter were firm, partially easing the impact of delayed revenue recognition. - FY2020-Q2MitigatedAnnual report
「Some projects expected to generate revenue in the third accounting quarter were recognized in the second accounting quarter, among other factors,」
The company stated that some projects expected to be recognized as revenue in the third quarter were recognized ahead of schedule in the second quarter, partially easing the previously delayed timing of revenue recognition. - FY2020-Q1RestatedAnnual report
「Although results for the video equipment rental division improved from the first consolidated cumulative period of the previous fiscal year, it is also a division where seasonal factors lead to stable results from the third accounting quarter onward. Results for the first quarter of the current consolidated cumulative period therefore remained weak.」
Although the video equipment rental division improved year on year, its first-quarter results remained weak because of the seasonal pattern of stable performance from the third quarter onward, reaffirming the concentration of revenue recognition in later periods. - FY2019-Q3RestatedAnnual report
「As with the SP and events division, many events and exhibitions are held in autumn, and revenue from large-scale entertainment-related projects is scheduled to be recognized in the fourth consolidated accounting quarter. As a result, the video equipment rental division is showing signs of recovery.」
The video equipment rental division has revenue recognition for large-scale entertainment-related projects scheduled in the fourth quarter, reaffirming that revenue recognition is weighted toward the second half. - FY2019-Q2RestatedAnnual report
「Results for the video equipment rental division in the second quarter of the current consolidated cumulative period were weak. As is usual, results through the second quarter remain subdued, as with the SP and events division, while orders tend to increase after the period when autumn events and exhibitions are held in large numbers.」
The video equipment rental division remained weak through the second quarter, reaffirming the seasonal concentration of revenue recognition, with orders increasing after autumn events and exhibitions. - FY2019-Q1RestatedAnnual report
「The video equipment rental division is subject to seasonal factors, as is the SP and events division. Although revenue from long-term projects such as concert tours is expected from the third consolidated accounting quarter onward in the current fiscal year, results for the first quarter of the current consolidated cumulative period remained weak.」
The video equipment rental division expects revenue from long-term projects such as concert tours from the third quarter onward, confirming that revenue recognition remains weighted toward later periods. - FY2018-Q3MitigatedAnnual report
「As with the SP and events division, the video equipment rental division performed well in the third consolidated accounting quarter after the autumn period, when many events and exhibitions are held, but this was insufficient to recover the weak results through the second quarter. Results through the third consolidated cumulative period therefore remained below the same period of the previous year.」
Results in the third consolidated accounting quarter improved after the autumn period, partially resolving the seasonal delay in revenue recognition, but cumulative results remained below the same period of the previous year and did not fully recover from the earlier weakness. - FY2018-Q2RestatedAnnual report
「Orders for projects to be implemented by the second quarter of the current consolidated cumulative period were sluggish, while many orders were for projects scheduled after the period when autumn events and exhibitions are held in large numbers. As a result, results for the second quarter of the current consolidated cumulative period were weak.」
The small number of projects implemented by the current quarter and the continued concentration of orders and revenue from autumn onward indicate a seasonal imbalance in timing. - FY2018-Q1RestatedAnnual report
「In the SP (sales promotion) and events division, orders for projects scheduled to be carried out during the cumulative first quarter of the consolidated fiscal year were weak, while many orders were for projects scheduled to be carried out from autumn onward. As a result, performance during the cumulative first quarter of the consolidated fiscal year was sluggish.」
The small number of projects scheduled for implementation in the first quarter and the large number scheduled from autumn onward contributed to weak first-quarter results, continuing to indicate a concentration of revenue recognition by timing. - FY2017MaterialisedAnnual report
「Net sales declined because projects scheduled for implementation and expected to generate revenue in the current fiscal year were postponed until the next fiscal year, among other factors,」
The company stated that projects expected to be implemented and recognized as revenue in the current fiscal year were actually postponed until the next fiscal year, resulting in delayed revenue recognition. - FY2017-Q3MitigatedAnnual report
「The video equipment rental division generated sales from large-scale projects such as concerts and stage productions as a result of the capital investment program that had been actively pursued, but」
The company stated that revenue related to capital investment projects was actually generated for some large-scale projects expected in the previous quarter to be recognized from the third quarter onward, partially easing the risk of delayed revenue recognition. - FY2017-Q2First statedAnnual report
「Net sales were ¥5,132 million, down 9.1% year on year, due to sluggish orders and because revenue from large-scale projects was scheduled to be recognized from the third quarter onward, among other reasons,」
The company identified as a factor behind the decline in revenue this quarter that projects ordered through large-scale and capital investment initiatives would be recognized as revenue from the third quarter onward rather than in the current quarter.