Construction Cost Overruns and Construction Loss Risk
First written in FY2022. 2 of 5 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
Sankyu moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
57 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The provision for construction losses was ¥468 million in the previous consolidated fiscal year and ¥260 million in the current consolidated fiscal year.」
Regarding the risk of excess construction costs and construction losses, the provision for construction losses decreased from ¥468 million to ¥260 million, and the amount charged to cost of sales was limited to ¥9 million. - FY2025MitigatedAnnual report
「The provision for construction losses was ¥1,637 million in the previous consolidated fiscal year and ¥468 million in the current consolidated fiscal year.」
Regarding the risk of excess construction costs and construction losses, the provision for construction losses decreased from ¥1,637 million to ¥468 million, and the amount charged to cost of sales was ¥0 million in the current period. - FY2024Increase in provision for construction lossesAnnual report
「The provision for construction losses was ¥591 million in the previous consolidated fiscal year and ¥1,637 million in the current consolidated fiscal year.」
Regarding the risk of excess construction costs and construction losses, the provision for construction losses increased from ¥591 million to ¥1,637 million, and ¥1,306 million was also included in cost of sales. - FY2023MaterialisedAnnual report
「The provision for construction losses included in cost of sales was ¥591 million for the current consolidated fiscal year.」
In connection with the risk of cost overruns on long-term, highly complex projects and overseas projects, a ¥591 million provision for construction losses was recognized. - FY2022First statedAnnual report
「If costs exceeding estimates are incurred as long-term contract work with a high degree of technical difficulty, or work involving country risks overseas, progresses, this may adversely affect the performance of the consolidated group.」
The risk that costs exceeding expectations on long-term, highly complex projects and overseas projects could adversely affect performance was identified as a risk related to significant accounting estimates. The provision for construction losses recognized in FY2022 was ¥65 million.