Risks related to receivables collection and profitability management under the percentage-of-completion method
First written in FY2016. 10 of 18 entries say "Restated". Latest entry: FY2026.
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- FY2026Revenue increases with progress; remaining performance obligations decreaseAnnual report
「The total transaction price allocated to remaining performance obligations at the end of the current consolidated fiscal year was ¥33,822 million. These remaining performance obligations are expected to be completed and recognized as revenue within approximately 4 years from the end of the current consolidated fiscal year.」
Revenue recognized based on the percentage of completion, including completed construction, increased to ¥34,644 million, while remaining performance obligations decreased from ¥35,399 million to ¥33,822 million. The allowance for loss on construction contracts was ¥20 million, unchanged from the previous fiscal year. - FY2025Increase in revenue recognized based on the percentage of completion and remaining performance obligationsAnnual report
「The total transaction price allocated to remaining performance obligations at the end of the current consolidated fiscal year was ¥35,399 million. These remaining performance obligations are expected to be completed and recognized as revenue within approximately 5 years from the end of the current consolidated fiscal year.」
Revenue recognized based on the percentage of completion, including completed construction, was ¥29,139 million, while remaining performance obligations were ¥35,399 million. The allowance for loss on construction contracts was ¥20 million, unchanged from the previous fiscal year. - FY2024MaterialisedAnnual report
「Allowance for loss on construction contracts − 20」
The allowance for loss on construction contracts increased from none at the end of the previous fiscal year to ¥20 million at the end of the current fiscal year, indicating the profitability deterioration risk associated with large, long-term construction projects in numerical terms. Revenue recognized based on the percentage of completion, including completed construction, was ¥19,406 million. - FY2023-Q2MaterialisedAnnual report
「Allowance for loss on construction contracts − 45」
The allowance for loss on construction contracts increased from none at the end of the previous consolidated fiscal year to ¥45 million at the end of the second quarter, indicating the construction profitability risk in numerical terms. - FY2022Specific manifestation of risks associated with large, long-term construction projectsAnnual report
「Large, long-term construction projects, including projects for which revenue is recognized based on the percentage of completion, may incur additional costs or experience delays in the construction period due to specification changes, additional construction, deterioration in the financial condition of subcontractors or partner factories, and factors causing delivery delays.」
The company has specified the traditional receivables collection and profitability management risks associated with the percentage-of-completion method, including additional costs for large, long-term construction projects, subcontractors and partner factories, construction delays and allowances for loss on construction contracts. Revenue recognized based on the percentage of completion was disclosed as ¥10,714 million. - FY2022-Q3RestatedAnnual report
「During the nine months ended 31 December, there were no material changes, including abnormal fluctuations in the financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
The company treats the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes from the risks described in the previous fiscal year. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, there were no material changes in financial condition, operating results or cash flow, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company treats the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes from the risks described in the previous fiscal year. - FY2022-Q1RestatedAnnual report
「During the cumulative first quarter of the current fiscal year, there were no material changes in financial condition or operating results, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company treats the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes from the risks described in the previous fiscal year. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no material changes in financial condition or operating results, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company continues to treat the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, there were no material changes in financial condition, operating results or cash flow, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company continues to treat the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes. - FY2020-Q1RestatedAnnual report
「During the cumulative first quarter of the current fiscal year, there were no material changes in financial condition or operating results, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company continues to treat the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no material changes in financial condition or operating results, including any unusual changes, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company continues to treat the risks related to receivables collection and profitability management under the percentage-of-completion method as involving no material changes. - FY2019-Q2MaterialisedAnnual report
「Allowance for loss on construction contracts − 7」
An allowance for loss on construction contracts of ¥7 million, which had not been recognized at the end of the previous consolidated fiscal year, was recognized at the end of the second quarter, indicating the construction profitability risk in numerical terms. - FY2018RestatedAnnual report
「For projects to which the percentage-of-completion method is applied, the company has established a management system for each construction project and strictly manages estimates made when orders are received and progress after orders are received. If profitability changes, the company promptly revises estimated costs, among other measures, and believes that it maintains an appropriate level of accuracy when recognizing revenue. However, if appropriate action is delayed, the group's operating results and financial position may be affected.」
The company continues to disclose the risks associated with recognizing receivables before billing under the percentage-of-completion method, longer collection periods and changes in profitability, as well as estimates and progress management for each project. - FY2017RestatedAnnual report
「For projects to which the percentage-of-completion method is applied, the company has established a management system for each construction project and strictly manages estimates made when orders are received and progress after orders are received.」
The company continues to disclose the risks of recognizing receivables before billing under the percentage-of-completion method, longer collection periods and delays in revising estimated costs, as well as profitability and progress management for each project. - FY2017-Q3RestatedAnnual report
「In terms of profit, thorough profitability management in equipment construction and reductions in operating expenses resulted in higher operating profit and ordinary profit than in the same period of the previous year.」
The company continued to strengthen profitability management in equipment construction and reduce operating expenses, resulting in year-on-year increases in operating profit and ordinary profit. - FY2017-Q2MitigatedAnnual report
「In terms of profit, thorough profitability management in equipment construction and reductions in operating expenses resulted in higher operating profit, ordinary profit and net income attributable to owners of the parent than in the same period of the previous year.」
It states that profitability improved year on year as a result of thorough profitability management in equipment construction and reductions in operating expenses. - FY2016First statedAnnual report
「Accordingly, revenue and the corresponding receivables may be recognized before consideration is billed to customers, resulting in an extended collection period for trade receivables.」
The company states that, under the percentage-of-completion method, revenue and receivables are recognized before billing, and that longer collection periods and delays in revising estimated costs may affect operating results and financial condition.