Uncertainty in Estimates of Total Contract Value and Manufacturing Costs and Under the Percentage-of-Completion Method
First written in FY2016. 5 of 11 entries say "Restated". Latest entry: 2026-09-04.
NJ Holdings moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
The whole theme swung hardest in 2022: 1 of 9 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026-H1MaterialisedAnnual report
「Profit declined because costs increased in development projects due to deviations from the planned timing of outsourcing costs and other factors, while orders for new development projects were delayed.」
Costs increased in development projects due to deviations from the planned timing of outsourcing costs and other factors, and uncertainty in cost and progress estimates for contract development materialized as lower profit in the current interim consolidated accounting period. - FY2023-Q3RestatedAnnual report
「Lower margins accompanying an increase in total estimated costs」
Higher estimates of total costs and lower margins in contract development were also confirmed during the quarter, with estimation uncertainty continuing to affect the financial results. - FY2023-Q2MaterialisedAnnual report
「Revenue declined due to a lower progress rate accompanying an increase in total estimated costs.」
Higher estimates of total costs and a lower progress rate in contract development actually materialized as lower revenue, meaning that the estimation uncertainty previously disclosed emerged in the financial results. - FY2022RestatedAnnual report
「Revenue from contract development depends heavily on estimates of total contract value and total costs. If estimates made when an order is received diverge from actual results and profitability deteriorates beyond initial expectations, revenue already recognized must be retrospectively revised and a loss recorded.」
Even after adoption of the revenue recognition standard, the company continues to disclose uncertainty arising from dependence on estimates of total contract value, total costs and progress, as well as the burden of additional costs and the possibility of disputes when specifications change or development is extended. - FY2021RestatedAnnual report
「Revenue recognized under the percentage-of-completion method during the current consolidated fiscal year was ¥3,720.854 million, of which ¥2,192.350 million related to work in progress at the end of the fiscal year.」
Alongside its continued disclosure of estimation uncertainty under the percentage-of-completion method, the company quantified revenue recognized under the method and the amount of work in progress at fiscal year-end. - FY2020RestatedAnnual report
「The percentage-of-completion method depends heavily on estimates of total contract value and total production costs. If estimates made when an order is received diverge from actual results and profitability deteriorates beyond initial expectations, revenue already recognized must be retrospectively revised and a loss recorded.」
The company continues to disclose estimation differences under the percentage-of-completion method, the potential non-recovery of additional costs, and the possibility of disputes. - FY2018WorsenedAnnual report
「If terms change or progress is delayed, additional costs may arise that cannot be passed on to the production contractor and therefore cannot be recovered. Disputes may also arise over responsibility for those costs.」
In addition to estimation uncertainty related to the percentage-of-completion method, the company explicitly described the potential impact of unrecoverable additional costs and disputes over responsibility for those costs. - FY2016First statedAnnual report
「The percentage-of-completion method depends heavily on estimates of total contract value and total production costs. If estimates made when an order is received diverge from actual results and profitability deteriorates beyond initial expectations, revenue already recognized must be retrospectively revised and a loss recorded.」
The company explains the risks of recognizing losses and being unable to recover costs due to estimation differences, changes in terms, and progress delays in long-term content production.