Expansion of the Percentage-of-Completion Method and Strengthening of the Construction Cost Management Framework
First written in FY2021-Q1. 10 of 12 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2018: 1 of 6 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Sales related to performance obligations satisfied over time as of the end of the consolidated fiscal year under review ¥118.676 million」
Continues to recognize revenue based on progress toward satisfying performance obligations, with sales recognized over time totaling ¥118.676 million. - FY2024RestatedAnnual report
「The Group primarily provides consulting services for embedded software development and recognizes revenue based on the progress toward satisfying performance obligations under contracts with customers. Progress toward satisfying performance obligations is measured based on the ratio of costs incurred by the end of each reporting period to total estimated costs.」
Continues to measure progress toward satisfying performance obligations based on the ratio of costs incurred to estimated costs under the revenue recognition standard. - FY2023RestatedAnnual report
「The Group primarily provides consulting services for embedded software development and recognizes revenue based on the progress toward satisfying performance obligations under contracts with customers. Progress toward satisfying performance obligations is measured based on the ratio of costs incurred by the end of each reporting period to total estimated costs.」
Continues to recognize revenue based on progress toward satisfying performance obligations under the revenue recognition standard and measure progress using the ratio of costs incurred to estimated costs. - FY2023-Q3RestatedAnnual report
「We primarily provide consulting services for embedded software development and recognize revenue based on the progress toward satisfying performance obligations under contracts with customers. Progress toward satisfying performance obligations is measured based on the ratio of costs incurred by the end of each reporting period to total estimated costs.」
Continues to recognize revenue based on progress toward satisfying performance obligations and measure progress using the ratio of costs incurred to estimated costs. - FY2022RestatedAnnual report
「We have applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020; hereinafter, the “revenue recognition standard”) and other relevant standards from the beginning of the current fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer.」
Continues to apply throughout the fiscal year the revenue recognition standard adopted from the first quarter. Discloses sales of ¥110.524 million related to performance obligations satisfied over time. - FY2022-Q3RestatedAnnual report
「We have applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020) and other relevant standards from the beginning of the first quarter accounting period. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer.」
Continues to apply the revenue recognition standard adopted from the beginning of the first quarter accounting period in the third quarter under review. States that there is no impact on profit or loss or the opening balance of retained earnings. - FY2022-Q2RestatedAnnual report
「We have applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020) and other relevant standards from the beginning of the first quarter accounting period. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer.」
Continues to apply the revenue recognition standard adopted from the beginning of the first quarter accounting period in the second quarter under review. States that there is no impact on profit or loss or retained earnings at the beginning of the period. - FY2022-Q1ReframedAnnual report
「We have applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020) and other relevant standards from the beginning of the first quarter accounting period under review. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. Accordingly, whereas we previously applied the percentage-of-completion method to projects for which the outcome of the work performed to date could be reliably determined and the completed-contract method to other projects, we now recognize revenue over time as we satisfy the performance obligation to transfer goods or services to the customer when control transfers over a period of time.」
The accounting policy has changed from the previous explanation concerning expansion of the scope of the percentage-of-completion and completed-contract methods to recognizing revenue over time as performance obligations are satisfied under the revenue recognition standard. Progress is measured based on the ratio of costs incurred to estimated costs, and the cost recovery method is used when a reasonable estimate is difficult. - FY2021RestatedAnnual report
「Previously, we applied the percentage-of-completion method to projects for which the outcome of the work performed to date could be reliably determined, and the completed-contract method to other projects. From the current fiscal year, as improvements were made to the cost management system and reliable estimates became possible for some of the other projects, we have also applied the percentage-of-completion method to those projects. As a result, sales increased by ¥61.623 million, while operating profit, ordinary profit and profit before income taxes for the year increased by ¥32.322 million.」
Continues to disclose the expansion of the scope of the percentage-of-completion method and strengthening of the cost management system, and presents the impact for the full fiscal year. - FY2021-Q3RestatedAnnual report
「From the first quarter accounting period, we expanded the scope of the percentage-of-completion method. As a result, sales increased by ¥85.358 million, while operating profit and ordinary profit each increased by ¥43.024 million.」
Continues to disclose the application of the percentage-of-completion method expanded from the first quarter accounting period and its impact through the cumulative third quarter period. No decision to expand the scope further is described. - FY2021-Q2RestatedAnnual report
「From the first quarter accounting period, we expanded the scope of the percentage-of-completion method. As a result, sales increased by ¥47.397 million, while operating profit and ordinary profit each increased by ¥23.766 million.」
Continues to disclose the application of the percentage-of-completion method expanded from the first quarter accounting period and its impact during the cumulative period, namely a ¥47.397 million increase in sales and ¥23.766 million increases in operating profit and ordinary profit. - FY2021-Q1First statedAnnual report
「Previously, we applied the percentage-of-completion method to projects for which the outcome of the work performed to date could be reliably determined, and the completed-contract method to other projects. From the first quarter accounting period under review, as improvements were made to the cost management system and reliable estimates became possible for some of the other projects, we have also applied the percentage-of-completion method to those projects. As a result, sales increased by ¥37.640 million, while operating profit, ordinary profit and profit before income taxes for the quarter increased by ¥18.359 million.」
For projects for which reliable estimates became possible as a result of strengthening the cost management system and other measures, the Company expanded the scope of the percentage-of-completion method from the first quarter accounting period under review and disclosed the resulting impact on sales and profit.