Uncertainty in Estimating Total Construction Costs and Construction Losses
First written in FY2021. 2 of 6 entries say "Worsened", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2024: 10 of 69 companies on the "Worse" side.
25 other companies' latest entry also says "Other".
- FY2026Lower percentage-of-completion revenue ratio and increase in provision for construction lossesAnnual report
「Construction revenue recognized under the percentage-of-completion method in the current consolidated fiscal year accounted for 27.77% of consolidated net sales, including 4.03% related to incomplete construction projects.」
The ratio of construction revenue recognized under the percentage-of-completion method fell from 32.9% in the previous fiscal year to 27.77%, while the provision for construction losses increased from ¥10.38 million to ¥66.35 million. Uncertainty in estimates of total construction costs continues. - FY2025WorsenedAnnual report
「Construction revenue recognized under the percentage-of-completion method in the current consolidated fiscal year accounted for 32.9% of consolidated net sales, including 2.8% related to incomplete construction projects.」
The ratio of construction revenue recognized under the percentage-of-completion method rose from 31.4% in the previous fiscal year to 32.9%, expanding the portion of revenue that could be affected by uncertainty in estimates of total construction costs. - FY2024MitigatedAnnual report
「Construction revenue recognized under the percentage-of-completion method in the current consolidated fiscal year accounted for 31.4% of consolidated net sales, including 5.3% related to incomplete construction projects.」
The ratio of construction revenue recognized under the percentage-of-completion method fell from 32.7% in the previous fiscal year to 31.4%. The Group continues to disclose the uncertainty in estimates of total construction costs and the potential impact on financial figures for the following fiscal year. - FY2023WorsenedAnnual report
「Construction revenue recognized under the percentage-of-completion method in the current consolidated fiscal year accounted for 32.7% of consolidated net sales, including 5.9% related to incomplete construction projects. Estimates of total construction costs involve uncertainty, and changes in construction-site conditions and other factors may cause the estimated total construction costs to differ from the final determined amount, potentially having a material impact on consolidated financial figures for the following consolidated fiscal year.」
Construction revenue recognized under the percentage-of-completion method rose to 32.7% of consolidated net sales, and the Group disclosed the extent to which uncertainty in estimates of total construction costs could affect financial figures for the following fiscal year. - FY2022RestatedAnnual report
「Construction revenue recognized under the percentage-of-completion method in the current consolidated fiscal year accounted for 17.3% of consolidated net sales, including 3.2% related to incomplete construction projects. Estimates of total construction costs involve uncertainty, and changes in construction-site conditions and other factors may cause the estimated total construction costs to differ from the final determined amount, potentially having a material impact on consolidated financial figures for the following consolidated fiscal year.」
Construction revenue recognized under the percentage-of-completion method was ¥8.198863 billion, or 17.3% of consolidated net sales, and the Group continues to disclose the uncertainty in estimates of total construction costs and the potential impact on the following fiscal year. - FY2021First statedAnnual report
「The recognition of construction revenue under the percentage-of-completion method and the recording of provisions for construction losses are affected by estimates of total construction costs. Estimates of total construction costs involve uncertainty because the nature of the work and construction-site conditions differ from project to project, making it difficult to establish uniform criteria applicable to all projects. Accordingly, if the estimated total construction costs differ from the final determined amount, the consolidated financial statements for the following consolidated fiscal year may be materially affected.」
The Group disclosed the uncertainty that construction revenue recognized under the percentage-of-completion method and provisions for construction losses are affected by estimates of total construction costs. Construction revenue recognized under the percentage-of-completion method was ¥5.575543 billion, and the provision for construction losses was ¥128.4 million.