Risk of revenue being recognized in different periods due to acceptance and revenue recognition for contract work
First written in FY2022. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 4 of 13 companies on the "Worse" side.
7 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The engineering business includes new industrial furnace construction and repair work on incineration facilities and other equipment. When customers accept completed projects, careful checks are performed to confirm specifications such as materials and dimensions, which differ by contract, as well as through test operation. In addition, transaction amounts per project are often substantially larger than for product sales in the refractories business. Consequently, the Group’s performance may be affected by the timing of revenue recognition and related matters.」
The company reconfirmed the risk of revenue being recognized in the wrong period as a result of customer acceptance, specification checks and test operation for contract work, as well as its policy of working toward appropriate revenue recognition. - FY2022First statedAnnual report
「When customers accept completed engineering projects, careful checks are performed to confirm specifications such as materials and dimensions, which differ by contract, as well as through test operation. In addition, transaction amounts per project are often substantially larger than for product sales in the refractories business. Consequently, the Group’s performance may be affected by the timing of revenue recognition and related matters.」
The company disclosed as a new risk that, in the engineering business, revenue recognition and other matters may affect performance depending on customer acceptance, specification checks, test operation and the size of transaction amounts.