Reclassifying Certain Personnel Costs as Cost of Revenue
First written in FY2026-H1. 3 of 5 entries say "Restated". Latest entry: 2026-08-14.
2 other companies' latest entry also says "Restated".
- FY2026-H1First statedAnnual report
「Certain personnel expenses of the Company were previously recorded as selling, general and administrative expenses, but from the current interim consolidated accounting period are included in cost of sales. This change was made in connection with the review of the service domains and performance-management units described in the segment information note, to review the classification of personnel expenses and better reflect the substance of the business. As a result, ¥481 million of personnel expenses recorded in SG&A in the interim consolidated statement of income for the previous interim consolidated accounting period were reclassified to cost of sales. Cost of sales changed from ¥5,690 million to ¥6,172 million, while SG&A changed from ¥2,408 million to ¥1,926 million.」
In connection with the review of service domains and performance-management units, the Group changed the classification of certain personnel expenses from SG&A to cost of sales and reclassified the prior-period figures. The reclassified personnel expenses totaled ¥481 million. - 2026-06-12First statedEarnings presentation
「Some personnel costs had previously been recorded as selling, general and administrative expenses, but from the current first quarter of the consolidated fiscal year, they are being included in cost of sales.」
Newly explains the approach of transferring some front-line personnel costs from SG&A to cost of sales, distinguishing gross profit as a measure of business-unit operating capability based on pricing, utilization and headcount, and SG&A as pure selling and administrative activity and organizational business-management capability.