Return Risk Under the Consignment Sales System
First written in FY2016. 2 of 7 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2017: 1 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「To limit returns, the Group is taking measures including optimizing production and shipment volumes through closer scrutiny of sales forecasts, adjusting book allocations to bookstores based on marketing data, and strengthening book sales through distribution channels without returns, such as direct online sales and e-book sales.」
The company continues to recognize the return risk and is responding by optimizing production and shipment volumes, adjusting book allocations, and strengthening direct online sales and e-book sales. - FY2022-Q1Change in accounting treatment from a provision for returns to a refund liabilityAnnual report
「Accordingly, for sales with a right of return, the company previously recorded a provision for returns based on the amount equivalent to gross profit. It has changed its method so that, for goods or products expected to be returned, revenue is not recognized at the time of sale in accordance with the provisions on variable consideration, and a refund liability is recognized for the amount of consideration received or to be received for those goods or products.」
The accounting treatment for return risk changed from recording a provision for returns to a method under which revenue is not recognized for products expected to be returned and a refund liability is recorded. - FY2020MitigatedAnnual report
「To limit returns, the Group is taking measures including optimizing production and shipment volumes through closer scrutiny of sales forecasts, adjusting book allocations to bookstores based on marketing data, and strengthening book sales through distribution channels without returns, such as direct online sales and e-book sales.」
The company continues to recognize the return risk itself, while disclosing specific measures to limit it, including optimizing production and shipment volumes, adjusting book allocations, and strengthening direct online sales and e-book sales. - FY2018-Q2MaterialisedAnnual report
「Although the impact of returns of hit products from the year-earlier period remained in the first quarter, bookstore sales of new and backlist titles, media advertising and online sales performed well in the second quarter, resulting in a clear recovery trend. Revenue was ¥1,316 million, down 2.0% year on year, and segment income (operating income) was ¥182 million, down 20.8%.」
The impact of returns of hit products from the same period of the previous year remained in the second quarter, and the return risk continues to be an actual factor affecting performance. - FY2018-Q1MaterialisedAnnual report
「In the publishing business, online sales were strong and the publication of new releases progressed smoothly. However, due to the impact of returns of hit products from the year-earlier period, revenue was ¥540 million, down 15.5% year on year, and segment income (operating income) was ¥39 million, down 65.1%.」
Returns of hit products from the same period of the previous year actually occurred, reducing revenue and segment profit in the publishing business. - FY2017RestatedAnnual report
「To provide for losses from returns, the Company records an allowance for returns adjustment, calculated by multiplying the accounts receivable balance relating to the publishing business by the return rate and trading profit margin for a specified period. Fluctuations in the return rate may affect the Group's operating results.」
The company reiterates the risk of fluctuations in the return rate associated with the consignment sales system and the recording of a provision for returns. - FY2016First statedAnnual report
「To provide for losses from returns, the Company records an allowance for returns adjustment, calculated by multiplying the accounts receivable balance relating to the publishing business by the return rate and trading profit margin for a specified period. Fluctuations in the return rate may affect the Group's operating results.」
The company recognizes fluctuations in the return rate as a business performance risk and records a provision for returns.