Changes to Return and Loyalty-Point Accounting Following Adoption of the Revenue Recognition Accounting Standard
First written in FY2022-Q2. 2 of 3 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2024: 1 of 8 companies on the "Worse" side.
35 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「Revenue related to the loyalty point program is recognized by identifying points granted to members as a performance obligation, allocating the transaction price based on the stand-alone selling price calculated after taking into account expected future expirations and other factors, and recognizing revenue when the points are used.」
The company continues to apply its revenue recognition treatment for refund liabilities and loyalty points. - FY2022-Q3RestatedAnnual report
「As a result, for the cumulative third quarter of the consolidated fiscal year, revenue decreased by ¥75.858 million, cost of sales increased by ¥764 thousand, gross profit decreased by ¥82.255 million, and operating income, ordinary income and profit before income taxes each decreased by ¥54.239 million.」
The company continues to apply the revenue recognition standard and related standards and discloses the impact for the cumulative third quarter. - FY2022-Q2First statedAnnual report
「The Accounting Standard for Revenue Recognition and related standards were applied from the beginning of the first quarter of the consolidated 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.」
For sales with a right of return, the company changed to a method that does not recognize revenue or cost of sales for the expected returns. For the loyalty point program, it changed to a method that defers revenue recognition by treating the points as a performance obligation. As a result, for the cumulative second quarter, revenue decreased by ¥16.966 million, while operating income and ordinary income each increased by ¥35.769 million.