Future Adoption of the Revenue Recognition Standard

「As a result, revenue for the cumulative third quarter decreased by ¥63 million, cost of sales decreased by ¥48 million, and gross profit, operating profit, ordinary profit and profit before income taxes each decreased by ¥15 million. There was no impact on the opening balance of retained earnings.」

「As a result, revenue for the cumulative second quarter decreased by ¥158 million, cost of sales decreased by ¥114 million, and gross profit, operating profit, ordinary profit and profit before income taxes decreased by ¥44 million. There was no impact on the opening balance of retained earnings.」

「The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020; hereinafter, the “Revenue Recognition Standard”), etc. was applied from the beginning of the first quarter of the current fiscal year. Revenue is recognised 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, for domestic transport transactions in which we and our domestic consolidated subsidiaries had previously recognised revenue mainly when transport commenced, we determined that the performance obligation is satisfied when the cargo is inspected and accepted by the customer or when the cargo arrives, and recognise revenue at that point.」

「Scheduled application date for the Accounting Standard for Revenue Recognition, etc. The standards are scheduled to be applied from the beginning of the fiscal year ending March 2022. The impact of applying these accounting standards, etc. on the consolidated financial statements is expected to be immaterial.」

「Scheduled adoption date for the “Accounting Standard for Revenue Recognition” and related standards: adoption from the beginning of the fiscal year ending March 2022.」