Revenue adjustment due to the incorrect recognition of free points as revenue
First written in FY2021. 1 of 2 entries say "Materialised", first in FY2021. Latest entry: FY2023.
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- FY2023Tax treatment of expired points clarifiedAnnual report
「At consolidated subsidiary Video Market, Inc., the treatment of consumption tax on expired points under its points-based monthly content subscription service was reviewed, and the revenue corresponding to expired points was classified as a non-taxable transaction, resulting in a ¥49 million increase in revenue compared with the previous treatment.」
Separately from the prior-period error in recording revenue from complimentary points, the consumption tax classification of revenue corresponding to expired points was reviewed, resulting in a ¥49 million increase in revenue. - FY2021MaterialisedAnnual report
「It was discovered that, in part of the content business, system deficiencies in points processing meant that free points could not be distinguished from purchased points, resulting in the consumption of free points being recognised as revenue. Accordingly, we recorded a cumulative revenue adjustment of ¥322 million, including amounts relating to prior periods, in a single entry in the fourth quarter, of which ¥156 million related to the current fiscal year.」
It was discovered that the consumption of free points had been recognised as revenue due to deficiencies in the points processing system, and a ¥322 million downward revenue adjustment, including amounts relating to prior periods, was made.