Uncertainty in revenue recognition associated with measuring progress and estimating costs for contracted projects
First written in FY2024. 1 of 2 entries say "Restated". Latest entry: FY2025-H1.
The whole theme swung hardest in 2024: 9 of 64 companies on the "Worse" side.
39 other companies' latest entry also says "Restated".
- FY2025-H1RestatedAnnual report
「During the interim accounting period, there were no new business or other risks and no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company stated that there had been no material changes to uncertainty in revenue recognition arising from project progress and cost estimates. - FY2024First statedAnnual report
「Total-cost estimates are reviewed as commissioned projects progress. Specification or process changes that could not have been foreseen when total costs were estimated may alter total costs and cause the progress percentage to change, potentially having a material effect on amounts recognized in the financial statements for the following fiscal year.」
For commissioned projects, progress is measured based on estimated total costs. The company disclosed the possibility that specification or process changes could alter recognized revenue as a significant accounting estimate. Revenue recognized based on progress in fiscal 2024 was ¥162,321 thousand.