Performance volatility and risk of losses on contracts won arising from changes in project cost estimates
First written in FY2022. 2 of 3 entries say "Restated". Latest entry: 2026-10-01.
The whole theme swung hardest in 2022: 9 of 76 companies on the "Worse" side.
42 other companies' latest entry also says "Restated".
- 2026-10-01RestatedGeneral Meeting of Shareholders
「業務の進行途上において業務内容の変更等が行われる場合には、当該状況の変化に関する情報を適時に適切な部署・権限者に伝達し、当該情報をもとに適宜実行予算の見直しを行っております。」
実行予算の見積り変更による業績変動リスクと、情報伝達・予算見直しによる対応を再確認している。 - FY2023RestatedAnnual report
「When the scope of work changes during its progress, the company responds by promptly and appropriately communicating information on the change in circumstances to the relevant departments and authorised personnel, and reviewing the working budget as appropriate based on that information, thereby ensuring appropriate revenue recognition.」
The company continues to address working budget estimation risk by communicating information on changes and reviewing budgets promptly. - FY2022First statedAnnual report
「The method used to estimate the progress of revenue recognition is based on the proportion of actual costs to the working budget, or the input method. Estimates of working budgets are highly project-specific because the scope and construction period differ for each contract, and because the scope of work may change during progress when unforeseen events occur. If it becomes necessary to revise the working budget estimate again due to unforeseen changes in circumstances or other factors, this could affect the performance and financial condition of the Group.」
Following the application of the accounting standards for revenue recognition, the company has identified for the first time as a major risk the estimation risk specific to operations in which progress is calculated based on the ratio of actual costs to the working budget. An order-loss provision of ¥20.422 million was also recognised during the fiscal year, quantifying losses related to estimates.