Occurrence of Loss-Making Construction Projects and Uncertainty in Estimates under the Percentage-of-Completion Method
First written in FY2020. 11 of 19 entries say "Worsened", first in FY2021. Latest entry: 2026-07-31.
Ainavo Holdings moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 6 of 16 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2025MitigatedAnnual report
「The provision for construction losses decreased from ¥57.509 million to ¥51.763 million.」
The provision for construction losses decreased from ¥57.509 million at the end of the previous fiscal year to ¥51.763 million, reducing the provision balance for unprofitable construction projects. However, uncertainty regarding the percentage-of-completion method and estimates continued to be disclosed. - FY2025-H1MitigatedAnnual report
「Provision for construction losses 57,509 57,216」
The provision for construction losses edged down from ¥57.509 million at the end of the previous fiscal year to ¥57.216 million. - FY2024WorsenedAnnual report
「Provision for construction losses 47,746 57,509」
The provision for construction losses increased from ¥47.746 million at the end of the previous fiscal year to ¥57.509 million. The financial figures confirm that uncertainty remains regarding unprofitable construction projects and estimates under the percentage-of-completion method. - FY2024-Q2WorsenedAnnual report
「Provision for construction losses 47,746 80,666」
The provision for construction losses increased from ¥47.746 million at the end of the previous consolidated fiscal year to ¥80.666 million at the end of the second quarter, significantly expanding the provision balance for unprofitable construction projects. - FY2024-Q1WorsenedAnnual report
「Provision for construction losses 47,746 48,948」
The provision for construction losses increased from ¥47.746 million at the end of the previous consolidated fiscal year to ¥48.948 million at the end of the first quarter, with the provision balance for unprofitable construction projects increasing again. - FY2023MitigatedAnnual report
「Provision for construction losses 59,469 47,746」
The provision for construction losses decreased from ¥59.469 million at the end of the previous fiscal year to ¥47.746 million. The report also described internal controls involving monthly reviews of estimated costs and planned construction periods, along with enhanced systems for construction cost and quality control. - FY2023-Q3WorsenedAnnual report
「Provision for construction losses 59,469 62,255」
The provision for construction losses increased from ¥59.469 million at the end of the previous consolidated fiscal year to ¥62.255 million at the end of the third quarter, expanding the provision balance for unprofitable construction projects. - FY2023-Q2Slight increase in the provision for construction lossesAnnual report
「Provision for construction losses 59,469 60,020」
The provision for construction losses increased by ¥551,000 from ¥59.469 million at the end of the previous consolidated fiscal year to ¥60.020 million at the end of the second quarter, resulting in a slight increase in the provision balance for unprofitable construction projects. - FY2023-Q1WorsenedAnnual report
「Provision for construction losses 59,469 60,866」
The provision for construction losses increased from ¥59.469 million at the end of the previous consolidated fiscal year to ¥60.866 million at the end of the first quarter, expanding provisions for unprofitable construction projects. - FY2022WorsenedAnnual report
「Provisions for construction losses involve uncertainty in accounting estimates. If the assumptions underlying the estimates change due to factors such as design changes during construction and surging raw material prices, causing total incurred construction costs to fluctuate, this could affect the performance of our group.」
The provision for construction losses increased from ¥40.098 million at the end of the previous fiscal year to ¥59.469 million, expanding provisions for unprofitable construction projects and estimation uncertainty. - FY2022-Q3WorsenedAnnual report
「Provision for construction losses 40,098 97,957」
The provision for construction losses increased from ¥40.098 million at the end of the previous consolidated fiscal year to ¥97.957 million at the end of the third quarter, further expanding provisions for unprofitable construction projects. - FY2022-Q2WorsenedAnnual report
「Provision for construction losses 40,098 51,723」
The provision for construction losses increased from ¥40.098 million at the end of the previous consolidated fiscal year to ¥51.723 million at the end of the second quarter, further increasing provisions against unprofitable construction projects. - FY2021WorsenedAnnual report
「However, revenue recognition under the percentage-of-completion method and provisions for construction losses involve uncertainty in accounting estimates. If the assumptions underlying those estimates change due to factors such as design changes or remedial work during construction and surging raw material prices, causing the total construction revenue or total construction costs to fluctuate, this could affect the performance of our group.」
The report detailed unprofitable construction projects and the uncertainty of estimates under the percentage-of-completion method, while the provision for construction losses increased from ¥27.238 million at the end of the previous fiscal year to ¥40.098 million. - FY2021-Q3MaterialisedAnnual report
「Provision for construction losses 27,238 43,533」
The provision for construction losses increased from ¥27.238 million at the end of the previous consolidated fiscal year to ¥43.533 million at the end of the third quarter, confirming an increase in provisions for unprofitable construction projects. - FY2021-Q2MaterialisedAnnual report
「Provision for loss on construction contracts 27,238 31,731」
The provision for loss on construction contracts increased by ¥4.493 million, from ¥27.238 million at the end of the previous consolidated fiscal year to ¥31.731 million at the end of the second quarter, confirming an increase in provisions for unprofitable construction contracts in the financial statements. - FY2021-Q1MaterialisedAnnual report
「Provision for loss on construction contracts 27,238 55,711」
The provision for loss on construction contracts increased from ¥27.238 million at the end of the previous consolidated fiscal year to ¥55.711 million at the end of the first quarter, confirming an increase in provisions for unprofitable construction contracts in the financial statements. - FY2020First statedAnnual report
「However, there is a risk that unprofitable construction contracts may arise because of additional costs that are difficult to forecast, such as design changes and rework during construction. The percentage-of-completion method is applied to construction projects that meet certain requirements. The estimated percentage of completion is calculated for each project using the cost-to-cost method based on project management data, and revenue from completed construction is recognized. For projects expected to incur losses, a provision for loss on construction contracts is recorded for the estimated amount of future losses.」
Additional costs arising from design changes, rework and soaring raw-material prices, as well as uncertainty in estimates associated with the percentage-of-completion method and provisions for loss on construction contracts, were first organized as an independent business risk.