Revenue Recognition Risk from Changes in Estimated Total Construction Costs
First written in FY2022. 3 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 9 of 63 companies on the "Worse" side.
39 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Because changes in total construction costs affect the calculation of the progress toward satisfying performance obligations, total construction costs at the reporting date must be estimated reasonably. However, as construction projects generally extend over long periods, these estimates may be affected by design changes during construction and fluctuations in labor costs, subcontracting costs and other factors as the projects progress.」
The accounting risk that estimates of total costs for long-term construction projects and fluctuations in design changes, labor costs, subcontracting costs and other factors may affect revenue recognition and performance in the following fiscal year remains. - FY2024RestatedAnnual report
「In recognizing revenue, because changes in total construction costs affect the calculation of the progress toward satisfying performance obligations, total construction costs at the reporting date must be estimated reasonably. However, as construction projects generally extend over long periods, these estimates may be affected by design changes during construction and fluctuations in labor costs, subcontracting costs and other factors as the projects progress.」
The accounting risk that estimates of total costs for long-term construction projects and fluctuations in design changes, labor costs, subcontracting costs and other factors may affect revenue recognition and performance in the following fiscal year remains. - FY2023RestatedAnnual report
「Because changes in total construction costs affect the calculation of the progress toward satisfying performance obligations, total construction costs at the reporting date must be estimated reasonably. However, as construction projects generally extend over long periods, these estimates may be affected by design changes during construction and fluctuations in labor costs, subcontracting costs and other factors as the projects progress, potentially affecting performance in the following consolidated fiscal year.」
The accounting risk that estimates of total costs for long-term construction projects and fluctuations in design changes, labor costs, subcontracting costs and other factors may affect revenue recognition and performance in the following fiscal year remains. - FY2022First statedAnnual report
「Because changes in total construction costs affect the calculation of the progress toward satisfying performance obligations, total construction costs at the reporting date must be estimated reasonably. However, as construction projects generally extend over long periods, these estimates may be affected by design changes during construction and fluctuations in labor costs, subcontracting costs and other factors as the projects progress, potentially affecting performance in the following consolidated fiscal year.」
With the adoption of the revenue recognition standard, the company has for the first time provided detailed disclosure as a significant accounting estimate of the possibility that changes in total costs of long-term construction projects, design changes, labor costs, subcontracting costs and other factors may affect progress toward completion and performance in the following fiscal year.