Change in revenue presentation due to a change in the advertising contribution agreement
First written in FY2021-Q1. 2 of 3 entries say "Restated". Latest entry: FY2021-Q3.
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- FY2021-Q3RestatedAnnual report
「Advertising contributions collected from franchisees, which had been recorded as revenue through the previous fiscal year, have not been recorded as revenue from the first quarter of the current fiscal year.」
The company continues to account for the advertising contribution after the contract change by excluding it from sales and recording the portion relating to excess usage under selling, general and administrative expenses. - FY2021-Q2RestatedAnnual report
「Advertising contributions collected from franchisees, which had been recorded as revenue through the previous fiscal year, have not been recorded as revenue from the first quarter of the current fiscal year. Revenue for the cumulative second quarter of the previous fiscal year, adjusted for advertising contributions, decreased 11.4% year on year. This reflects a change in the agreement at Curves Japan, the franchisor headquarters, under which franchisees are no longer charged additional amounts for advertising expenditures exceeding advertising contribution revenue, with the excess now recorded as selling, general and administrative expenses.」
The company has continued to apply the change in the agreement under which advertising contributions are not recorded as revenue, with excess expenditure recorded as selling, general and administrative expenses. - FY2021-Q1First statedAnnual report
「Advertising contributions collected from franchisees, which had been recorded as revenue through the previous fiscal year, have not been recorded as revenue from the cumulative first quarter of the current fiscal year. Revenue for the cumulative first quarter of the previous fiscal year, adjusted for advertising contributions, decreased 12.8% year on year. This reflects a change in the agreement at Curves Japan, the franchisor headquarters, under which franchisees are no longer charged additional amounts for advertising expenditures exceeding advertising contribution revenue, with the excess now recorded as selling, general and administrative expenses.」
The agreement covering advertising contributions collected from franchisees was changed, and such contributions ceased to be recorded as revenue from the first quarter, with the excess expenditure recorded as selling, general and administrative expenses.