Risk of Revenue-Recognition Errors and Additional Losses Due to Misestimation of Total Contract Costs
First written in FY2021. 12 of 17 entries say "Worsened", first in FY2022-Q1. Latest entry: 2026-08-13.
Japan System Techniques moved to the "Worse" side of this theme in 2021, 4 years before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 3 of 11 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- 2026-08-13WorsenedEarnings
「Provision for loss on construction contracts 114,453 122,401」
The balance of the provision for loss on construction contracts increased from ¥114.453 million at the end of March 2026 to ¥122.401 million at the end of June 2026. - FY2026WorsenedAnnual report
「Provision for losses on construction contracts included in cost of sales: ¥114.453 million」
The provision for losses on construction contracts increased substantially from ¥617 thousand in the previous fiscal year to ¥114.453 million, and loss recognition related to total construction cost estimates and future cost increases expanded. - 2026-05-14WorsenedRevision of earnings forecasts
「Provision for loss on construction contracts 617 114,453」
The balance of the provision for loss on construction contracts increased from ¥617,000 at the previous fiscal year-end to ¥114.453 million, reflecting a substantial increase in estimated losses. - FY2026-H1WorsenedAnnual report
「Provision for losses on construction contracts 617 1,933」
The balance of the provision for losses on construction contracts increased from ¥617 thousand at the end of the previous fiscal year to ¥1.933 million at the end of the interim period, and loss estimates related to total construction cost estimates and future cost increases expanded. - FY2025MitigatedAnnual report
「Provision for losses on construction contracts included in cost of sales: ¥617 thousand」
The provision for losses on construction contracts decreased from ¥14.510 million in the previous fiscal year to ¥617 thousand, and loss recognition related to total construction cost estimates contracted substantially. - FY2025-H1MitigatedAnnual report
「Provision for losses on construction contracts 14,510 13,729」
The balance of the provision for losses on construction contracts decreased from ¥14.510 million at the end of the previous consolidated fiscal year to ¥13.729 million, and loss estimates contracted slightly from the end of the immediately preceding fiscal year. - FY2024-Q3WorsenedAnnual report
「Provision for losses on construction contracts 6,801 39,770」
The balance of the provision for losses on construction contracts increased from ¥6.801 million at the end of the previous consolidated fiscal year to ¥39.770 million at the end of the third quarter. Loss estimates related to total construction cost estimates and future cost increases expanded further from the previous quarter. - FY2024-Q2WorsenedAnnual report
「Provision for losses on construction contracts 6,801 29,660」
The balance of the provision for losses on construction contracts increased from ¥6.801 million at the end of the previous consolidated fiscal year to ¥29.660 million at the end of the second quarter, and loss estimates related to total construction cost estimates and future cost increases expanded. The risk was quantified through multiple figures and reflected in the actual increase in the provision. - FY2024-Q1WorsenedAnnual report
「Provision for losses on construction contracts 6,801 33,910」
The balance of the provision for losses on construction contracts increased from ¥6.801 million at the end of the previous consolidated fiscal year to ¥33.910 million at the end of the first quarter. Loss estimates related to total construction cost estimates and future cost increases expanded again. - FY2023MitigatedAnnual report
「Provision for losses on construction contracts included in cost of sales: ¥6.801 million」
The provision for losses on construction contracts decreased from ¥52.960 million in the previous fiscal year to ¥6.801 million, and actual loss recognition related to total construction cost estimates contracted. However, the risk of additional losses if costs increase in the future continues to be disclosed. - FY2023-Q2WorsenedAnnual report
「Provision for losses on construction contracts 52,960 63,104」
The balance of the provision for losses on construction contracts increased from ¥52.960 million at the end of the previous consolidated fiscal year to ¥63.104 million at the end of the second quarter, and loss estimates related to total construction cost estimates and future cost increases expanded. - FY2023-Q1Decrease in the provision for losses on construction contractsAnnual report
「Provision for losses on construction contracts 52,960 51,164」
The balance of the provision for losses on construction contracts decreased from ¥52.960 million at the end of the previous consolidated fiscal year to ¥51.164 million at the end of the first quarter. - FY2022WorsenedAnnual report
「Provision for losses on construction contracts included in cost of sales: ¥52.960 million」
The provision for losses on construction contracts increased from ¥12.797 million in the previous fiscal year to ¥52.960 million. Loss recognition related to errors in estimating total construction costs and future cost increases expanded for the full fiscal year as well. - FY2022-Q3WorsenedAnnual report
「Provision for losses on construction contracts 12,797 88,505」
The provision for losses on construction contracts increased from ¥12.797 million at the end of the previous consolidated fiscal year to ¥88.505 million at the end of the third quarter. Loss estimates related to errors in estimating total construction costs and future cost increases expanded further from the previous quarter. - FY2022-Q2WorsenedAnnual report
「Provision for losses on construction contracts 12,797 55,866」
The provision for losses on construction contracts increased from ¥12.797 million at the end of the previous consolidated fiscal year to ¥55.866 million at the end of the second quarter. Loss estimates related to errors in estimating total construction costs and future cost increases expanded further. - FY2022-Q1WorsenedAnnual report
「Provision for losses on construction contracts 12,797 26,395」
The provision for losses on construction contracts increased from ¥12.797 million at the end of the previous consolidated fiscal year to ¥26.395 million at the end of the first quarter. Loss estimates related to total construction cost estimates and future cost increases expanded. - FY2021First statedAnnual report
「Errors in estimating total construction costs could result in incorrect revenue recognition under the percentage-of-completion method. If costs increase in the future, additional losses may be recognised.」
For contracted software production, the company described as separate risks incorrect revenue recognition due to errors in estimating total construction costs and additional loss recognition if costs increase in the future.