Change in Revenue Recognition Method Following Adoption of the Accounting Standard for Revenue Recognition
First written in FY2022-Q1. 2 of 3 entries say "Restated". Latest entry: FY2022-Q3.
The whole theme swung hardest in 2020: 1 of 11 companies on the "Worse" side.
92 other companies' latest entry also says "Restated".
- FY2022-Q3RestatedAnnual report
「As a result, the opening balance of retained earnings decreased by ¥55 million. Compared with the previous method, revenue for the cumulative third quarter decreased by ¥52 million, cost of sales decreased by ¥18 million, selling, general and administrative expenses decreased by ¥47 million, operating loss decreased by ¥13 million, non-operating expenses decreased by ¥10 million, and ordinary loss and quarterly net loss before income taxes each decreased by ¥23 million.」
The company has continued applying the revenue recognition accounting standard adopted from the first quarter and updated and disclosed its impact on the cumulative third quarter. - FY2022-Q2RestatedAnnual report
「As a result, the opening balance of retained earnings decreased by ¥55 million. Compared with the previous method, revenue for the cumulative second quarter decreased by ¥41 million, cost of sales increased by ¥133 million, selling, general and administrative expenses decreased by ¥38 million, operating loss increased by ¥136 million, non-operating expenses decreased by ¥7 million, and ordinary loss and quarterly net loss before income taxes each increased by ¥128 million.」
The company has continued applying the revenue recognition accounting standard adopted from the first quarter and disclosed the specific impact on the cumulative second quarter. - FY2022-Q1First statedAnnual report
「The company applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020) and related standards from the beginning of the first quarter of the current fiscal year, and recognizes revenue 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. Accordingly, whereas the company had generally applied the shipping basis to product sales in the textile machinery business, and the shipping basis for domestic sales and the bill-of-lading basis for overseas sales in the machine tools-related business, it has changed to a method of recognizing revenue at the point in time, determined for each contract, when control of the promised goods or services is transferred to the customer.」
The company adopted the revenue recognition accounting standard from the quarter beginning 1 December 2021, changing from accounting primarily based on shipment and bill-of-lading dates to recognition when control transfers under each contract. As a result of the adoption, quarterly revenue decreased by ¥955 million from the previous method.