Deterioration in the Profitability of Contracted Development Projects
First written in FY2020. 7 of 12 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for loss on orders 381 255」
The provision for loss on orders decreased from ¥381 thousand at the end of the previous fiscal year to ¥255 thousand. Expected future losses remain, but the financial exposure has decreased. - FY2026-H1WorsenedAnnual report
「Provision for loss on orders 381 676」
The provision for loss on orders increased from ¥381 thousand at the end of the previous consolidated fiscal year to ¥676 thousand at the end of the current interim consolidated accounting period, indicating an increase in expected future losses on commissioned development projects. - FY2025-H1MitigatedAnnual report
「Provision for loss on orders 1,666 －」
The provision for loss on orders decreased from ¥1,666 thousand at the end of March 2024 to zero at the end of September 2024. - FY2024-Q3WorsenedAnnual report
「Provision for loss on orders 855 2,040」
The provision for loss on orders increased from ¥855 thousand at the end of the previous consolidated fiscal year to ¥2,040 thousand at the end of December 2023, indicating an increase in expected future losses on commissioned development projects. - FY2024-Q2MitigatedAnnual report
「Provision for loss on orders 855 484」
The provision for loss on orders decreased from ¥855 thousand at the end of March 2023 to ¥484 thousand at the end of September 2023. A balance indicating expected future losses remains, but the amount has decreased from the end of the previous fiscal year. - FY2023MitigatedAnnual report
「Provision for loss on orders － 855」
The provision for loss on orders decreased from ¥8,734 thousand at the end of the third quarter to ¥855 thousand at the fiscal year-end. However, a provision continued to be recorded compared with zero at the end of the previous fiscal year, and the disclosure does not state that project profitability risks have been eliminated. - FY2023-Q2MaterialisedAnnual report
「Provision for loss on orders － 8,734」
The provision for loss on orders, which was zero at the end of the previous consolidated fiscal year, was recorded at ¥8,734 thousand at the end of September 2022. Expected future losses on commissioned development projects have again become apparent in the accounts. - FY2022MitigatedAnnual report
「There were no contract assets for which future losses were expected at the end of the current consolidated fiscal year.」
The company continued to manage project profitability and stated that, at the end of the current consolidated fiscal year, there were no contract assets for which future losses were expected. The balance of the provision for loss on orders also fell to zero. - FY2022-Q2MitigatedAnnual report
「Provision for loss on orders 1,437 －」
The balance of the provision for loss on orders decreased from ¥1.437 million at the end of the previous consolidated fiscal year to zero as of 30 September 2021. - FY2022-Q1MitigatedAnnual report
「Provision for loss on orders 1,437 439」
The balance of the provision for loss on orders decreased from ¥1.437 million at the end of the previous consolidated fiscal year to ¥439,000 at the end of the first quarter of the current fiscal year. No individual project or reason for the decrease was disclosed. - FY2021-Q3MaterialisedAnnual report
「Provision for loss on orders － 5,457」
The provision for loss on orders, which was zero at the end of the previous consolidated fiscal year, amounted to ¥5.457 million at the end of the third quarter of the current consolidated fiscal year. Although no individual project was described, an accounting provision was recorded for expected losses associated with deteriorating profitability in contract development. - FY2020First statedAnnual report
「However, development man-hours and the results of development cannot be fully estimated in advance. If development man-hours increase because of unforeseen circumstances, or if additional costs for rework arise because of changes to various conditions after an order is received, defects (bugs) or other quality issues such as inadequate services, project profitability could deteriorate.」
The company seeks to secure appropriate profits by reviewing required man-hours and outsourcing costs when orders are received and managing project progress.