Uncertainty in estimating construction costs and progress under percentage-of-completion accounting
First written in FY2020. 11 of 13 entries say "Restated". Latest entry: FY2026.
Nippon Avionics moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2024: 9 of 64 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「(Revenue recognition for contracts in which performance obligations are satisfied over time) Amounts recorded in the consolidated financial statements for the current consolidated fiscal year Revenue 12,360 19,619」
Revenue subject to recognition over time increased from ¥12,360 million to ¥19,619 million. The amount subject to potential impact from uncertainty in estimating total costs, work and labor hours increased. - 2026-05-25RestatedGeneral Meetings of Shareholders
「For contracts in which performance obligations are satisfied over a specified period, revenue is recognized based on the progress toward satisfying the performance obligations. Progress is calculated based on the ratio of costs incurred through the end of the consolidated fiscal year to the estimated total costs.」
The policy of recognizing revenue based on total estimated costs and progress, including under the percentage-of-completion method, was reconfirmed. - FY2025RestatedAnnual report
「For contracts for which the Company determines that performance obligations are satisfied over a certain period, revenue is recognized based on the progress toward satisfying the performance obligation. The estimated total costs are based on estimates at the end of each consolidated fiscal year for each contract. However, because estimating the work and labor hours required involves uncertainty, the estimates may cause fluctuations in the performance of the Company's corporate group.」
The Company continued to disclose revenue recognition over time and uncertainty in estimating total costs, work and labor hours. Relevant revenue increased from ¥11,079 million in the previous fiscal year to ¥12,360 million, while its percentage of revenue remained broadly at the same level. - FY2025-H1RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
The Company continued to explain that there had been no material changes in accounting estimates or the related assumptions concerning the percentage-of-completion method and other matters. - FY2024-Q3RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
The Company continued to explain that there had been no material changes in accounting estimates or the related assumptions concerning the percentage-of-completion method and other matters. - FY2023RestatedAnnual report
「For contracts for which the Company determines that performance obligations are satisfied over a certain period, revenue is recognized based on the progress toward satisfying the performance obligation. Progress is calculated as the ratio of costs incurred to estimated total costs, using the input method.」
The Company continued to disclose revenue recognition over time and uncertainty in estimated total costs, work hours and other factors. Relevant revenue for the current fiscal year was ¥9,661 million. - FY2023-Q3RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
The Company continued to explain that there had been no material changes from the previous fiscal year in accounting estimates or the related assumptions concerning the percentage-of-completion method and other matters. - FY2023-Q2RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
It was explained that there had been no material changes from the previous fiscal year in accounting estimates or the related assumptions. - FY2023-Q1RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
It was explained that there had been no material changes from the previous fiscal year in accounting estimates or the related assumptions. - FY2022RestatedAnnual report
「For contracts for which the Company determines that performance obligations are satisfied over a certain period, revenue is recognized based on the progress toward satisfying the performance obligation. Progress is calculated as the ratio of costs incurred to estimated total costs, using the input method.」
Regarding revenue recognition over time, the Company recorded ¥8,220 million in revenue for the current fiscal year and continued to explain that uncertainty in estimated total costs, work hours and other factors could affect performance in the following fiscal year. - FY2022-Q3RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
It was explained that there had been no material changes in accounting estimates or the related assumptions. - FY2021RestatedAnnual report
「Of the ¥20,195 million in revenue for the current consolidated fiscal year, ¥8,676 million was revenue recognized under the percentage-of-completion method, accounting for 43.0% of revenue.」
The Company quantitatively disclosed that revenue recognized under the percentage-of-completion method amounted to ¥8,676 million, or 43.0% of revenue, and continued to explain that uncertainty in estimating total construction costs and the degree of completion could affect performance. - FY2020First statedAnnual report
「The total estimated construction costs serving as the basis for recognizing revenue under the percentage-of-completion method are based on estimates at the end of each consolidated fiscal year for each contract. However, because estimating the work and labor hours required to complete construction contracts and other projects involves uncertainty, the estimates may cause fluctuations in the performance of the Company's corporate group.」
For revenue recognition under the percentage-of-completion method, the Company separately disclosed for the first time the uncertainty in estimating the work, labor hours, total construction costs and degree of completion as a risk that could affect performance.