Deferred Revenue Recognition Due to Carried-Over Orders
First written in FY2018-Q1. 5 of 15 entries say "Worsened", first in FY2019-Q2. Latest entry: FY2023-Q1.
Tanseisha moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
1 other company's latest entry also says "Reframed".
- FY2023-Q1ReframedAnnual report
「This was mainly due to lower orders received than in the same quarter of the previous year and the application of the Accounting Standard for Revenue Recognition and other standards. The backlog for the cumulative first quarter was ¥9,057 million, down 31.8% year on year.」
In addition to the explanation that project carryforwards postponed revenue recognition, the application of the revenue recognition accounting standard was explicitly identified as a factor behind the decline in the backlog. - FY2022-Q3RestatedAnnual report
「This was mainly due to orders received during the cumulative third quarter for large projects to be carried forward to the following quarter and beyond. The backlog for the cumulative third quarter was ¥23,797 million, up 30.7% year on year.」
The increase in the backlog resulting from large projects being carried forward to the following quarter and beyond continues to be reflected in the commercial and other facilities business. - FY2022-Q1WorsenedAnnual report
「Net sales were ¥15,954 million, down 21.3% year on year, mainly because prolonged restrictions on economic activity resulting from the spread of COVID-19 reduced demand for commercial facilities, entertainment facilities and airport-related facilities.」
As in the previous consolidated fiscal year, lower demand caused by the infection affected revenue recognition, and net sales for the first quarter fell 21.3% year on year. - FY2021WorsenedAnnual report
「Net sales fell substantially to ¥69,225 million, down 15.2% from the previous consolidated fiscal year, mainly in the commercial and other facilities business, due to sluggish order-taking activity and the cancellation or postponement of events resulting from the spread of COVID-19.」
In addition to the explanation that project carryforwards postponed revenue recognition, the company identified sluggish order-taking activity and event cancellations and postponements as factors behind the 15.2% decline in full-year net sales. - FY2021-Q3WorsenedAnnual report
「Net sales were ¥54,051 million, down 10.4% year on year, due to the impact of sluggish order-taking activity, construction interruptions and schedule changes caused by the spread of COVID-19.」
While net sales were up 0.1% year on year in the cumulative second quarter, cumulative third-quarter net sales fell 10.4% due to the impact of sluggish order-taking activity, construction interruptions and schedule changes caused by the infection. - FY2021-Q2RestatedAnnual report
「Although net sales were affected by sluggish order-taking activity, construction interruptions and schedule changes caused by the spread of COVID-19, they were broadly in line with the same quarter of the previous year, at ¥36,716 million, up 0.1% year on year.」
Although sluggish order-taking activity, construction interruptions and schedule changes caused by the infection affected revenue recognition, net sales for the cumulative second quarter were broadly in line with the same period of the previous year. - FY2021-Q1WorsenedAnnual report
「Net sales were ¥20,272 million, down 6.1% year on year, mainly because construction interruptions and schedule changes caused by the spread of COVID-19 resulted in more projects being carried forward to the following quarter and beyond than in the same quarter of the previous year.」
In addition to the trend toward larger, longer-term projects and carryforwards by business segment, construction interruptions and schedule changes caused by the infection were explicitly identified as factors behind project carryforwards and the postponement of revenue recognition. - FY2020-Q3Increase in carried-over orders in the cultural facilities businessAnnual report
「During the nine months ended the third quarter, the order backlog in the Cultural Facilities Business increased significantly. This was mainly because the number of projects carried forward to the following quarter and beyond increased. The order backlog was ¥12,536 million, up 30.7% year on year.」
The increase in projects carried forward to the following quarter and beyond continues to be reflected in the increase in the cultural facilities business backlog. - FY2020-Q2Impact of carried-over orders across the Group and in commercial facilitiesAnnual report
「Revenue was ¥36,695 million, down 10.4% year on year, despite continued favourable market conditions, mainly because more projects than in the same quarter of the previous year were carried over to the following quarter and beyond.」
The increase in projects carried over to the following quarter and beyond is identified as a factor delaying revenue recognition across the consolidated Group, in addition to the cultural facilities and chain-store businesses. - FY2020-Q1Impact of carried-over orders in the cultural facilities businessAnnual report
「In the cultural facilities business, the number of projects carried over mainly to the following quarter and beyond increased, resulting in revenue of ¥3,921 million for the cumulative first quarter of the current consolidated fiscal year, down 35.1% year on year.」
The carryover of orders to the following quarter and beyond is identified as a factor delaying revenue recognition not only in the chain-store business but also in the cultural facilities business. - FY2019-Q3RestatedAnnual report
「In the chain-store business, order trends remained firm in both the apparel and food-service fields, but revenue and operating profit fell below the same quarter of the previous year partly because long-term and large-scale projects were carried over to the following quarter and beyond.」
The carryover of long-term and large-scale projects to the following quarter and beyond continues to be identified as a factor weighing on revenue and operating profit in the chain-store business. - FY2019-Q2WorsenedAnnual report
「In the chain-store business, both the apparel and food-service fields saw some projects become longer-term and larger in scale, increasing the number of projects carried over. As a result, both revenue and operating profit fell below the same quarter of the previous year.」
Whereas the company previously explained that revenue recognition for carried-over orders in the cultural facilities business had progressed in the first quarter, it identified the lengthening and expansion of projects and the increase in carried-over orders in the chain-store business as factors weighing on performance in the second quarter. - FY2019-Q1MitigatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, revenue from the cultural facilities business increased significantly. This was mainly because many large orders carried over from the previous fiscal year were recognized as revenue during the cumulative first quarter of the current consolidated fiscal year. Revenue from the cultural facilities business was ¥6,040 million, up 33.1% year on year.」
The explanation shifted from revenue recognition being deferred because of large orders carried over through the previous fiscal year to many carried-over orders being recognized as revenue in the first quarter, resulting in a 33.1% year-on-year increase in revenue from the cultural facilities business. - FY2018-Q3Shift in explanation from orders carried over to larger and longer-term projectsAnnual report
「In the commercial and other facilities business, market conditions remained favorable, and the company handled large corporate PR facilities and theme park-related projects, as well as many hotel and office new-build and renovation projects. However, the projects became larger and took longer than initially expected, resulting in sales and operating profit both falling below the same quarter of the previous year.」
The explanation has changed from orders being carried over to the following quarter and beyond, as described in the first quarter, to larger and longer-term projects and other factors affecting revenue and operating profit in the third quarter. - FY2018-Q1First statedAnnual report
「As a result, orders received during the cumulative first quarter of the current consolidated fiscal year totaled ¥19,370 million, up 13.5% year on year, but many orders were carried over to the following quarter and beyond, resulting in revenue of ¥21,476 million, down 9.3% year on year.」
The company explains that, although orders received increased, revenue for the quarter fell below the previous year’s level because many orders were carried over to the following quarter and beyond.