Changes in revenue recognition methods following adoption of the revenue recognition accounting standard

「The Accounting Standard for Revenue Recognition (Accounting Standard No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Standard”) and other standards were applied from the beginning of the consolidated fiscal year. Revenue is now 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.」

「The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Standard”) and other standards were applied from the beginning of the first quarter of the current consolidated fiscal year. 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 transfers to the customer. Accordingly, for certain products for which revenue had previously been recognized as sales proceeds were collected, the timing of revenue recognition was changed to the point when control of the products transfers to the customer. As a result, for the six months ended the second quarter, net sales increased by ¥7 million and cost of sales increased by ¥22 million, while operating income, ordinary income and profit before income taxes for the quarter decreased by ¥15 million each. Inventories and other current liabilities each increased by ¥324 million. In addition, the opening balance of retained earnings increased by ¥121 million.」