Changes in Estimates for Revenue Recognition Under the Percentage-of-Completion Method
First written in FY2020. 3 of 4 entries say "Mitigated", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2024: 9 of 64 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「For each construction contract, we conduct appropriate construction profitability management, including regularly reviewing not only the contract amount but also the estimated total construction costs and scheduled construction period.」
The company continues project-by-project profitability management in response to the risk of changes in estimates under the percentage-of-completion method. - FY2022MitigatedAnnual report
「For each construction contract, we conduct appropriate construction profitability management, including regularly reviewing not only the contract amount but also the estimated total construction costs and scheduled construction period.」
In response to the risk of changes in estimates under the percentage-of-completion method, the company continues to regularly review the contract amount, estimated total construction costs and scheduled construction period for each project. - FY2021MitigatedAnnual report
「For each construction contract, our group conducts appropriate construction profitability management, including regularly reviewing not only the contract amount but also the estimated total construction costs and scheduled construction period.」
In response to the risk of changes in estimates under the percentage-of-completion method, the company describes a management process that regularly reviews the contract amount, estimated total construction costs and scheduled construction period for each project. - FY2020First statedAnnual report
「We recognize revenue under the percentage-of-completion method. If it becomes necessary to revise the estimates due to unexpected additional construction costs or a substantial extension of the construction period, this may affect our group's operating performance and financial condition.」
The company has for the first time separately disclosed the risk that revisions to the cost-to-cost percentage of completion, estimated total construction costs and construction period under the percentage-of-completion method may affect operating performance.