Changes to the Recognition of Franchise Fees and IT Service Revenue Following the Adoption of the Revenue Recognition Standard
First written in FY2022-Q1. 4 of 6 entries say "Restated". Latest entry: FY2023.
5 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「Certain assessment services were changed from gross to net revenue recognition as agency transactions during the previous fiscal year. As a result, IT services revenue decreased 11.0% year on year, while franchise fee revenue decreased 23.8% year on year due to a change in the accounting treatment of renewal fees.」
The company reconfirms that the change to net presentation for agency transactions and the change in the accounting treatment of renewal fees contributed to the decreases in IT services revenue and franchise fee revenue. - FY2023-Q3AdvancedAnnual report
「IT services revenue decreased 12.7% year on year to ¥231 million due to changes in the accounting treatment resulting from revisions to certain contract structures. Franchise fee revenue also decreased 23.4% year on year to ¥120 million due to changes in the accounting treatment of renewal fee revenue.」
The company explains that revisions to certain contract structures and changes in the accounting treatment of renewal fee revenue contributed to the decreases in IT services revenue and franchise fee revenue. - FY2022RestatedAnnual report
「The company also adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, 31 March 2020) and other standards from the beginning of the current fiscal year. The main reason for the decrease in IT services revenue and cost of sales described above was the change from recognizing gross revenue to recognizing net revenue for agency transactions.」
The company reconfirms that the main reason for the decrease in IT services revenue and cost of sales was the change from gross to net presentation for agency transactions following the adoption of the revenue recognition standard. - FY2022-Q3RestatedAnnual report
「The company also adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, 31 March 2020) and other standards from the beginning of the first quarter of the current fiscal year. The main reason for the decrease in IT services revenue and cost of sales described above was the change from recognizing gross revenue to recognizing net revenue for agency transactions.」
The company reiterates that the revenue recognition standard applies and that the decrease in IT services revenue and cost of sales resulted from the change from gross to net presentation for agency transactions. - FY2022-Q2RestatedAnnual report
「The company also adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, 31 March 2020) and other standards from the beginning of the first quarter of the current fiscal year. The main reason for the decrease in IT services revenue and cost of sales described above was the change from recognizing gross revenue to recognizing net revenue for agency transactions.」
The company continues to apply the revenue recognition standard and explains that the decrease in IT services revenue and cost of sales resulted from the change from gross to net presentation for agency transactions. - FY2022-Q1First statedAnnual report
「The company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, 31 March 2020) and other standards from the beginning of the first quarter of the current fiscal year. Revenue is recognized at the amount of consideration expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer.」
The revenue recognition standard was adopted from the beginning of the fiscal year. Franchise fee revenue was changed to a method of recognition over the 5-year franchise contract period, while IT services revenue from agency transactions was changed from gross to net presentation. As a result of the cumulative impact, retained earnings at the beginning of the fiscal year decreased by ¥273 million.