Smoothing of Software Revenue Recognition under the Percentage-of-Completion Method
First written in FY2021. 1 of 3 entries say "Reframed", first in FY2022-Q1. Latest entry: FY2025.
The whole theme swung hardest in 2018: 1 of 6 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The company determined that this performance obligation is satisfied over a specified period because fulfilling the obligation under the contract with the customer creates an asset with no alternative use. It estimates the progress toward satisfaction of the performance obligation and recognizes revenue over a specified period based on that progress.」
For commissioned development, the company continues to estimate progress based on the satisfaction of performance obligations and recognize revenue over a specified period. - FY2022-Q1ReframedAnnual report
「For contracts for commissioned development, the company previously applied the percentage-of-completion method when the certainty of the outcome of the work completed to date could be established, and the completed-contract method when this requirement was not met. It has changed to a method of recognizing revenue over a specified period as it satisfies its performance obligations to transfer goods or services to customers.」
Following the application of the revenue recognition accounting standard and related standards, revenue from commissioned development contracts changed from the previous method based on the requirements for applying the percentage-of-completion and completed-contract methods to a method of recognizing revenue over a specified period as performance obligations are satisfied. - FY2021First statedAnnual report
「As the company had completed the establishment of a progress management system for system development, it applied the percentage-of-completion method from the current fiscal year, and expects revenue to be recognized evenly throughout the year.」
Following the establishment of a progress management system for system development, the company applied the percentage-of-completion method from the current fiscal year, presenting for the first time an accounting policy of recognizing revenue evenly throughout the year.