Risk of inaccurate revenue measurement and lack of transaction substance in cloud product sales
First written in FY2020. 4 of 5 entries say "Restated". Latest entry: FY2025-H1.
3 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「During the current interim accounting period, there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The Company has reconfirmed that there have been no significant changes to the risk of inaccurate revenue measurement and lack of transaction substance in cloud product sales. - FY2022RestatedAnnual report
「However, because revenue from cloud product sales is allocated over the relevant period, even if fluctuations arise from unusual transactions or returns, they may not readily appear in the revenue figures when the irregularity occurs.」
The Company continues to face the risk that period-allotted cloud revenue may delay the detection of unusual transactions and returns, affecting management decisions and the substance of transactions. - FY2021RestatedAnnual report
「Software is an intangible asset, and services provided particularly through the cloud are billed based on a period of use, with revenue likewise recognised on that basis.」
The Company continues to face the risk that period-allotted revenue from cloud products may delay the detection of unusual transactions and returns, affecting management decisions and the substance of transactions. - FY2021-Q3RestatedAnnual report
「During the cumulative third-quarter period, no new business or other risks arose. In addition, there were no significant changes to the business and other risks described in the securities report for the previous fiscal year.」
The Company states that there have been no significant changes to existing risks, including the risk of inaccurate revenue measurement and lack of transaction substance in cloud product sales. - FY2020First statedAnnual report
「Because revenue from cloud product sales is allocated over the relevant period, even if fluctuations arise from unusual transactions or returns, they may not readily appear in the revenue figures when the irregularity occurs, and it may be difficult to identify when it occurred. This creates risks including an impact on accurate management decisions and uncertainty over whether transactions actually took place.」
The Company identifies as a new risk the possibility that the period-based billing and revenue recognition of cloud services may delay the detection of unusual transactions and returns, affecting management decisions and the substance of transactions.