Revenue Volatility Risk Arising from Estimated Total Costs and Percentage of Completion
First written in FY2022. 3 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 1 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Because the construction contracts and software development undertaken by the Group are highly customized, being designed according to customer instructions, changes in the scope of work requested by customers and unexpected defects arising during software production could substantially increase the man-hours required for production.」
The risk that changes in the scope of construction and software development work or defects could cause the estimated total cost, percentage of completion and sales to fluctuate continues to be disclosed. Sales recognized based on the percentage of completion during the fiscal year were ¥328.58 million. - FY2024RestatedAnnual report
「Because the construction contracts and software development undertaken by the Group are highly individualised, as they are designed in accordance with customer instructions, the man-hours required for production may increase substantially due to changes in the scope of work requested by customers or unexpected defects arising during the software production process. If estimated total costs fluctuate as a result of these or other factors, revenue may fluctuate in line with changes in the percentage of completion.」
The risk of revenue fluctuations associated with estimated total costs and the percentage of completion continues to be disclosed. Revenue based on the percentage of completion was ¥4.031 billion in the current fiscal year. - FY2023RestatedAnnual report
「Because the construction contracts and software development undertaken by the Group are highly individualised, as they are designed in accordance with customer instructions, the man-hours required for production may increase substantially due to changes in the scope of work requested by customers or unexpected defects arising during the software production process. Conversely, future costs may be reduced through the Group's own efforts. If estimated total costs fluctuate as a result of these or other factors, revenue may fluctuate in line with changes in the percentage of completion.」
The risk of revenue fluctuations associated with estimated total costs and the percentage of completion continues to be disclosed. Revenue based on the percentage of completion was ¥3.473 billion in the current fiscal year. - FY2022First statedAnnual report
「Because the construction contracts and software development undertaken by the Group are highly individualised, as they are designed in accordance with customer instructions, the man-hours required for production may increase substantially due to changes in the scope of work requested by customers or unexpected defects arising during the software production process. Conversely, future costs may be reduced through the Group's own efforts. If estimated total costs fluctuate as a result of these or other factors, revenue may fluctuate in line with changes in the percentage of completion.」
Following the adoption of the revenue recognition standard, changes in the scope of construction and software development work, defects and cost fluctuations were disclosed as new accounting risks that could affect the percentage of completion and revenue.