Revenue Recognition for Franchise and Renewal Fees over the Contract Term
First written in FY2022-Q1. 2 of 4 entries say "Restated". Latest entry: FY2022.
7 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「The Accounting Standard for Revenue Recognition and related standards have been applied from the beginning of the fiscal year, and the major management indicators for the fiscal year reflect application of those standards.」
The revenue recognition standard has been applied from the beginning of the fiscal year, and the accounting policy of recognizing franchise initiation and renewal fees over the contract term continues to be applied. - FY2022-Q3RestatedAnnual report
「As a result, revenue for the nine months ended the third quarter increased ¥4.119 million, operating loss decreased ¥4.119 million, and ordinary loss and loss before income taxes for the quarter each decreased ¥4.119 million. The opening balance of retained earnings also decreased ¥26.651 million.」
The company continues to apply the accounting policy of recognizing franchise initiation and renewal fees over the contract term and disclosed the impact on profit or loss for the nine months ended the third quarter as ¥4.119 million. - FY2022-Q2AdvancedAnnual report
「As a result, revenue for the six months ended the second quarter increased ¥1.717 million, operating loss decreased ¥1.717 million, and ordinary income and profit before income taxes for the quarter each increased ¥1.717 million. The opening balance of retained earnings also decreased ¥26.651 million.」
The company specifically disclosed the impact on profit or loss for the cumulative period and retained earnings of applying the accounting policy of recognizing franchise initiation and renewal fees over the contract term. - FY2022-Q1First statedAnnual report
「The company has applied the Accounting Standard for Revenue Recognition and related standards from the beginning of the first quarter. 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 is transferred to the customer. Accordingly, franchise initiation and renewal fees, which were previously recognized at the beginning of the contract, are now recognized over the contract term.」
Following the application of the revenue recognition standard, franchise initiation and renewal fee revenue was changed from one-time recognition at the start of the franchise contract to recognition over the contract term.