Adoption of the Revenue Recognition Accounting Standard

「From the previous consolidated fiscal year, information disaggregating revenue arising from contracts with customers was changed from presentation classified by the timing of transfers of goods or services to presentation classified by the type of goods or services. From the six months ended the current interim period, the classifications were also changed to domestic education and international education.」

「Information disaggregating revenue arising from contracts with customers had been presented by the timing of transfers of goods or services, but from the current consolidated fiscal year, the presentation has been changed to classification by the type of goods or services.」

「Goods or services transferred at a point in time 9,301,527 Goods or services transferred over time 17,664 Total 9,319,191」

「Goods or services transferred at a point in time 6,152,099 Goods or services transferred over time 11,795 Total 6,163,894」

「Goods or services transferred at a point in time 8,669,373 Goods or services transferred over time 15,030 Total 8,684,403」

「Goods or services transferred at a point in time 5,721,370 Goods or services transferred over time 9,931 Total 5,731,302」

「Goods or services transferred at a point in time 2,837,179 Goods or services transferred over time 4,777 Total 2,841,957」

「As a result, compared with the figures before applying the Accounting Standard for Revenue Recognition, the consolidated statement of income for the fiscal year decreased by ¥178 thousand each in net sales, gross profit, ordinary profit and profit before income taxes, while the operating loss increased by ¥178 thousand.」

「As a result, compared with the previous method, net sales, gross profit, operating profit, ordinary profit and profit before income taxes for the nine months ended the third quarter decreased by ¥1,283 thousand each. Retained earnings at the beginning of the fiscal year also decreased by ¥11,634 thousand.」

「As a result of examining the identification of performance obligations and when they are satisfied, the company decided to recognize revenue from certain services over a specified period. Consequently, net sales, gross profit, operating profit, ordinary profit and profit before income taxes for the six months ended the second quarter decreased by ¥449 thousand each.」

「The Group applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Standard”) and related standards from the beginning of the first quarter under review. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services transfers to the customer.」