Risk of Estimating Total Construction Costs under the Percentage-of-Completion Method
First written in FY2021. 2 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 9 of 64 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Revenue from performance obligations satisfied over time was ¥5,812.811 million. Changes in the estimate of total construction costs may affect the calculation of the progress percentage and revenue in the next consolidated fiscal year.」
Revenue subject to the percentage-of-completion method decreased from ¥6,849.597 million in the previous fiscal year to ¥5,812.811 million, reducing the scale of revenue exposed to the impact of estimate changes. However, estimation risk itself remains. - FY2024WorsenedAnnual report
「Revenue related to performance obligations satisfied over time amounted to ¥7,410.636 million, and changes in estimates of total construction costs may affect the progress rate and revenue in the following consolidated fiscal year.」
Revenue subject to the percentage-of-completion method increased from ¥5,993 million in the previous fiscal year to ¥7,410.636 million, expanding the scale of potential earnings impact related to estimates of total construction costs. - FY2023RestatedAnnual report
「Amounts recognized in the consolidated financial statements for the current consolidated fiscal year」
Revenue related to performance obligations satisfied over time amounted to ¥5,993 million, and the accounting estimation risk that changes in estimates of total construction costs may affect the progress rate and revenue in the following consolidated fiscal year continues to be disclosed. - FY2022RestatedAnnual report
「Amounts recognized in the consolidated financial statements for the current consolidated fiscal year」
For construction contracts, revenue of ¥4,945.452 million related to performance obligations satisfied over time was recognized, and the possibility that estimates of total construction costs may affect the progress rate and revenue in the following fiscal year continues to be disclosed. - FY2021First statedAnnual report
「If total construction costs fluctuate due to unanticipated costs arising from additional work, changes in construction specifications or other factors, this may affect the calculation of the progress rate and revenue from completed construction contracts in the following consolidated fiscal year.」
For revenue of ¥4,528.560 million recognized under the percentage-of-completion method, the risk that total construction costs may fluctuate due to changes in subcontracting costs, raw material prices, labor hours, site conditions and other factors, affecting the progress rate and revenue in the following fiscal year, was disclosed independently for the first time as a material accounting estimate.