Changes in Estimates of the Allowance for Doubtful Accounts and Cancellation Adjustment Provisions
First written in FY2019. 3 of 4 entries say "Advanced", first in FY2020. Latest entry: FY2022.
The whole theme swung hardest in 2020: 4 of 19 companies on the "Worse" side.
2 other companies' latest entry also says "Advanced".
- FY2022AdvancedAnnual report
「As a result, compared with the previous method, the allowance for doubtful accounts increased by ¥613 million and the provision for cancellation adjustments decreased by ¥479 million in the current consolidated fiscal year. Operating profit, ordinary profit and profit before income taxes decreased by ¥133 million each.」
Based on the accumulation of historical bad debt rate data and improvements to receivables collection procedures, the company changed its receivables classifications and provision estimates. Profit decreased by ¥133 million due to the increase in the allowance for doubtful accounts and the decrease in the provision for cancellation adjustments. - FY2021-Q3AdvancedAnnual report
「In light of the status of the COVID-19 pandemic through the preparation of the consolidated financial statements for the third quarter, the company reviewed the impact of COVID-19 described under “Additional Information” in the securities report for the previous consolidated fiscal year.」
The company reviewed the accounting estimates related to the impact of the pandemic in the previous consolidated fiscal year and reflected the latest collection status and other information in its estimates of the allowance for doubtful accounts and the provision for cancellation adjustments. - FY2020AdvancedAnnual report
「Accordingly, to prepare for future losses expected to result from the spread of COVID-19, we have reflected collection status through the date of preparation of the consolidated financial statements and the latest available information in our estimates of the allowance for doubtful accounts and the cancellation adjustment allowance.」
In addition to historical bad debt rates and other factors, the company assumes future losses from infectious diseases and reflects collection status and the latest information in its provision estimates. - FY2019First statedAnnual report
「With respect to the allowance for doubtful accounts of the consolidated subsidiary 株式会社ネクシィーズ・ゼロ, the Company changed its estimate because, following the passage of 3 years since the subsidiary was established, data on its historical loss rate had accumulated and been refined, making a more precise estimate possible. In addition, in connection with this change in accounting estimate, expected future payments for securitized receivables are recorded in the cancellation adjustment allowance. As a result, operating income, ordinary income and income before income taxes and other adjustments for the consolidated fiscal year decreased by ¥93 million each compared with the previous method.」
Estimates of the allowance for doubtful accounts and cancellation adjustment allowance were changed based on accumulated historical loss-rate data, reducing profit by ¥93 million.