Changes to Revenue Presentation and Returns Accounting Following Adoption of the Revenue Recognition Accounting Standard
First written in FY2022-Q1. 3 of 4 entries say "Advanced", first in FY2022-Q2. Latest entry: FY2022.
The whole theme swung hardest in 2025: 2 of 9 companies on the "Worse" side.
11 other companies' latest entry also says "Advanced".
- FY2022AdvancedAnnual report
「As a result, for the current consolidated fiscal year, net sales decreased by ¥96,035 million, cost of sales decreased by ¥94,261 million, and selling, general and administrative expenses decreased by ¥1,854 million,」
Following full-year application of the revenue recognition accounting standard, the company presented agent transactions on a net basis, recorded sales commissions in cost of sales, recognized refund liabilities, and disclosed specific impacts on net sales and other items. - FY2022-Q3AdvancedAnnual report
「As a result, for the cumulative third quarter of the current consolidated fiscal year, net sales decreased by ¥68,252 million, cost of sales decreased by ¥66,909 million, and selling, general and administrative expenses decreased by ¥1,334 million, while operating loss, ordinary loss and quarterly net loss before income taxes each increased by ¥7 million.」
The company disclosed specific figures for the decreases in net sales, cost of sales, and selling, general and administrative expenses, as well as the increases in operating loss and other losses, resulting from application of the revenue recognition accounting standard for the cumulative third quarter. - FY2022-Q2AdvancedAnnual report
「The adoption of the revenue recognition accounting standard changed cumulative-period net sales to a net presentation from the beginning of the period, as described below under “Changes in accounting policies.” Had the standard not been applied, net sales would have been ¥50,619 million, an increase of ¥28,858 million, or 232.6%, from the same quarter of the previous year.」
Cumulative net sales for the second quarter after adoption of the revenue recognition accounting standard were ¥9,771 million, but would have been ¥50,619 million before adoption, representing an increase of ¥28,858 million, or 232.6%, year on year. The cumulative impact of applying the accounting standard was also quantified as a ¥40,847 million decrease in net sales, a ¥40,018 million decrease in cost of sales, and an ¥841 million decrease in selling, general and administrative expenses. - FY2022-Q1First statedAnnual report
「The company has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, dated 31 March 2020, hereinafter the “revenue recognition accounting standard”) and other standards from the beginning of the first quarter of the current consolidated fiscal year. Because the accounting treatment of revenue differs from that in the cumulative first quarter of the previous fiscal year, the discussion of operating results below does not include changes in amounts or year-on-year percentages.」
Beginning in the first quarter, the company applied the revenue recognition accounting standard, changed revenue presentation for transactions in which it acts as an agent from gross to net, reclassified sales commissions as cost of sales, and presented expected returns as a refund liability. As a result of the adoption, net sales decreased by ¥18,565 million, while operating loss, ordinary loss and quarterly net loss before income taxes each increased by ¥23 million.