Impact of Acceptance Timing on Period Earnings
First written in FY2020. 6 of 11 entries say "Materialised", first in FY2023-Q1. Latest entry: 2026-10-30.
Tokyo Automatic Machinery Works moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 5 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「In addition to demand for large projects for certain overseas customers easing from the levels seen in recent years, some projects were postponed, resulting in revenue of ¥1,165 million in the Production Machinery segment (¥5,061 million in the first six months of the previous fiscal year, down 77.0%) and segment profit of ¥281 million (¥1,317 million in the first six months of the previous fiscal year, down 78.6%).」
The timing of revenue recognition was pushed back due to delays in plans for large projects, and, combined with subdued demand, this materialised in a substantial decline in interim revenue and profit in the production machinery segment. - FY2025-H1MaterialisedAnnual report
「In the packaging machinery segment, inquiries and orders, particularly large-scale projects, remained solid as capital investment appetite continued amid demand for automation and labor saving, mainly in the confectionery and food industries. However, as many projects were scheduled to be recognized as revenue from the second half onward, revenue in the segment was ¥1.553 billion (¥1.663 billion in the previous interim accounting period, down 6.6%).」
The risk that the timing of revenue recognition may affect period income has materialised in the packaging machinery segment in the form of lower interim revenue, as projects scheduled for revenue recognition were concentrated in the second half despite steady orders. - FY2024MaterialisedAnnual report
「Under these circumstances, partly because some scheduled revenue was pushed back to the next fiscal year, revenue in this segment was ¥4,821 million, compared with ¥5,042 million in the same period of the previous year, a decrease of 4.4%.」
The risk that the timing of revenue recognition may affect period income has materialised in the packaging machinery segment in the form of lower current-year revenue because some scheduled revenue was pushed back to the next fiscal year. - FY2024-Q1MitigatedAnnual report
「Supported by a strong order backlog centered on large projects, the Production Machinery segment reported revenue of ¥2,591 million for the three months ended 30 June (¥884 million in the same quarter of the previous year, up 192.8%) and segment profit of ¥518 million (¥165 million in the same quarter of the previous year, up 213.8%).」
In response to the weakness in production machinery revenue caused by the concentration of revenue recognition timing in the first quarter of the previous fiscal year, this time substantial revenue and profit were recognised from an order backlog centred on large projects, indicating an improvement in the impact on period income. - FY2023-Q1MaterialisedAnnual report
「Revenue from the Production Machinery business was limited in the current quarter because much of it is scheduled for recognition from the second quarter onward,」
The risk previously described as the possibility that the timing of revenue recognition for large projects and other matters could affect first-quarter income has materialised in the form of low first-quarter production machinery revenue. - FY2022-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new matters relating to the business or accounting information described in this quarterly report that could materially affect investment decisions, nor any material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
The Company states that there have been no material changes regarding business and other risks, including the possibility that the timing of revenue recognition for large projects may affect period income. - FY2022-Q1RestatedAnnual report
「During the cumulative first-quarter period, there were no new matters relating to the business or accounting information described in this quarterly report that could materially affect investment decisions, nor any material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
The Company states that there have been no material changes regarding business and other risks, including the possibility that the timing of revenue recognition for large projects may affect period income. - FY2021RestatedAnnual report
「The Company's packaging machinery is recognised as revenue under the acceptance standard, while its production machinery is recognised under the percentage-of-completion method and the acceptance standard. However, revenue may be recognised at a timing different from that initially planned due to circumstances involving the Company or its customers. In the case of large projects, this may affect the Company's income for the quarter or fiscal year ending at the relevant quarter-end or year-end.」
The Company continues to identify as a major risk the possibility that the timing of revenue recognition may affect quarterly and annual income from large projects. - FY2020First statedAnnual report
「The Company's packaging machinery is recognised as revenue under the acceptance standard, while its production machinery is recognised under the percentage-of-completion method and the acceptance standard. However, revenue may be recognised at a timing different from that initially planned due to circumstances involving the Company or its customers. In the case of large projects, this may affect the Company's income for the quarter or fiscal year ending at the relevant quarter-end or year-end.」
The Company has identified as a new risk the possibility that the revenue recognition criteria for packaging machinery and production machinery, and the timing of acceptance and other events, may affect quarterly and annual income from large projects.