Change in Revenue Recognition Standard and Shift to the Acceptance Basis for the Fiscal Year Ending March 2022
First written in FY2020. 4 of 6 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2022.
Nittoku moved to the "Worse" side of this theme in 2022.
0 other companies' latest entry also says "Materialised".
- FY2022MaterialisedAnnual report
「As a result, compared with before applying the revenue recognition accounting standard and related standards, the consolidated income statement for the current consolidated fiscal year shows increases of ¥994 million in revenue, ¥769 million in cost of sales, and ¥271 million each in operating profit, ordinary profit and profit before income taxes, while selling, general and administrative expenses decreased by ¥46 million.」
The change in revenue recognition from the shipping-date basis to the acceptance basis was applied to the annual financial statements, resulting in actual increases of ¥994 million in revenue and ¥271 million in operating profit and related measures. - FY2022-Q3MaterialisedAnnual report
「As a result, revenue for the nine-month period of the third quarter of the current consolidated fiscal year decreased by ¥1,796 million, cost of sales decreased by ¥1,789 million, selling, general and administrative expenses decreased by ¥56 million, and operating profit, ordinary profit and profit before income taxes increased by ¥49 million each.」
The change in revenue recognition from the shipping-date basis to the acceptance basis resulted in an actual decrease of ¥1,796 million in revenue and an increase of ¥49 million in operating profit and related measures for the nine-month period of the third quarter. - FY2022-Q2MaterialisedAnnual report
「As a result, revenue for the six-month period of the second quarter of the current consolidated fiscal year decreased by ¥1,886 million, cost of sales decreased by ¥1,442 million, selling, general and administrative expenses decreased by ¥30 million, and operating profit, ordinary profit and profit before income taxes decreased by ¥412 million each. The opening balance of retained earnings also decreased by ¥604 million.」
The change in revenue recognition from the shipping-date basis to the acceptance basis resulted in actual decreases for the six-month period of the second quarter of ¥1,886 million in revenue, ¥412 million in operating profit and related measures, and ¥604 million in opening retained earnings. - FY2022-Q1MaterialisedAnnual report
「The company applied the “Accounting Standard for Revenue Recognition” and related standards from the beginning of the first quarter of the current consolidated fiscal year. Previously, it recognized revenue from product export transactions based on the shipping date, but it now recognizes revenue upon customer acceptance. As a result, revenue for the nine-month period of the first quarter of the current consolidated fiscal year decreased by ¥511 million, while operating profit, ordinary profit and profit before income taxes decreased by ¥53 million each. The opening balance of retained earnings also decreased by ¥604 million.」
The transition previously under consideration from the shipping-date basis to the acceptance basis was implemented on 1 April 2021. The actual impact was a ¥511 million decrease in revenue, a ¥53 million decrease in operating profit and related measures, and a ¥604 million decrease in opening retained earnings. - FY2021AdvancedAnnual report
「The company currently recognizes revenue from product exports under the shipping-date basis, but will transition to the acceptance basis from the fiscal year ending March 2022 in line with the change in the revenue recognition standard.」
The company explicitly stated that it will transition the revenue recognition standard previously under consideration from the shipping-date basis to the acceptance basis from the fiscal year ending March 2022. - FY2020First statedAnnual report
「The company currently recognizes revenue from product exports under the shipping-date basis, but is considering transitioning to the acceptance basis from the fiscal year ending March 2022 in line with the change in the revenue recognition standard. This could defer the timing of revenue recognition, increase inventories compared with the previous basis, and affect performance and financial condition.」
For revenue recognition on exported products, the company identified as a new risk the possibility of transitioning from the shipping-date basis to the acceptance basis from the fiscal year ending March 2022, and the resulting impact on the timing of revenue recognition and inventory balances.