Risks of Excess Work Hours, Delivery Delays and Liability for Damages in Development Projects
First written in FY2016. 13 of 30 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2026.
Asahi Intelligence Service moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Change in provision for contract losses (△ indicates a decrease) 84 △ 84」
The provision for contract losses decreased by ¥84 thousand in the current fiscal year, compared with an increase of ¥84 thousand in the previous fiscal year, and no additional losses were recognized. - FY2026-H1RestatedAnnual report
「There were no newly arising business or other risks during the interim accounting period. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2025MaterialisedAnnual report
「Change in provision for contract losses (△ indicates a decrease) — 84」
The company recorded an increase of ¥84 thousand in the provision for contract losses during the fiscal year, indicating that the risk of future losses on development projects has been recognized for accounting purposes. - FY2025-H1MitigatedAnnual report
「Change in provision for contract losses (△ indicates a decrease) 57 —」
The provision for contract losses increased by ¥57 thousand in the same period of the previous year, whereas there was no change during the current interim accounting period, and no additional provision was recorded for future losses. - FY2024RestatedAnnual report
「Demand for development services in this industry consists largely of projects undertaken under lump-sum contract arrangements. The company may record a loss if work hours increase beyond the estimate made when an order was received. In addition, delays in delivery or failure to deliver ultimately could result in liability for damages. The systems development projects accepted by the company are mostly relatively small, and the risk of incurring loss-making projects that would have a material impact on results is considered low.」
The company recognizes the risks of cost overruns, delivery delays and claims for damages on development projects, and reaffirms its assessment that the risk of significant loss-making projects is low because most projects are relatively small. - FY2024-Q3MaterialisedAnnual report
「Provision for contract losses — 816」
A provision for contract losses of ¥816 thousand, for which there was no balance at the end of the previous fiscal year, was recorded at the end of the current third-quarter accounting period, and the risk of future losses on development projects has been recognized for accounting purposes. - FY2024-Q2MaterialisedAnnual report
「Provision for contract losses — 57」
A provision for contract losses of ¥57 thousand, for which there was no balance at the end of the previous fiscal year, was recorded at the end of the current second-quarter accounting period, and the risk of future losses on development projects has been recognized for accounting purposes. - FY2023-Q3MaterialisedAnnual report
「Provision for contract losses — 1,680」
A provision for contract losses of ¥1.680 million, for which there was no balance at the end of the previous fiscal year, was recorded at the end of the current third-quarter accounting period, and the risk of future losses on development projects has been recognized for accounting purposes. - FY2023-Q2MaterialisedAnnual report
「Provision for contract losses — 488」
A provision for contract losses of ¥488 thousand, for which there was no balance at the end of the previous fiscal year, was recorded at the end of the current second-quarter accounting period. The risk of future losses on development projects continues to be recognized for accounting purposes. - FY2023-Q1MaterialisedAnnual report
「Provision for contract losses — 431」
A provision for contract losses of ¥431 thousand, for which there was no balance at the end of the previous fiscal year, was recorded at the end of the current first-quarter accounting period, and future losses on development projects have been recognized again for accounting purposes. - FY2022MitigatedAnnual report
「Change in provision for contract losses (△ indicates a decrease) 743 △ 743」
The company recorded a decrease of ¥743 thousand in the provision for contract losses, eliminating the provision recognized at the end of the previous fiscal year. - FY2022-Q3MaterialisedAnnual report
「Provision for contract losses 743 73」
The provision for contract losses decreased from ¥743 thousand at the end of the previous fiscal year to ¥73 thousand at the end of the current third-quarter accounting period. The provision, which had been eliminated in the previous quarter, was recorded again. The risk of future losses on development projects has been recognized again for accounting purposes. - FY2022-Q2MitigatedAnnual report
「Provision for contract losses 743 —」
The balance of the provision for contract losses fell from ¥743 thousand at the end of the previous fiscal year to zero at the end of the current second-quarter accounting period, eliminating the provision balance for future losses. - FY2022-Q1Decrease in provision balanceAnnual report
「Provision for contract losses 743 66」
The balance of the provision for contract losses decreased from ¥743 thousand at the end of the previous fiscal year to ¥66 thousand at the end of the current first-quarter accounting period. - FY2021MaterialisedAnnual report
「Change in provision for contract losses (△ indicates a decrease) — 743」
The company recorded an increase of ¥743 thousand in the provision for contract losses during the fiscal year, indicating that the risk of future losses on development projects continues to be recognized for accounting purposes. - FY2021-Q3MaterialisedAnnual report
「Provision for contract losses — 1,711」
The company recorded a provision for contract losses of ¥1.711 million at the end of the current third-quarter accounting period, and future losses on development projects continue to be recognized for accounting purposes. - FY2021-Q2MaterialisedAnnual report
「Provision for contract losses — 1,332」
The company recorded a provision for contract losses of ¥1.332 million at the end of the current second-quarter accounting period, and future losses on development projects continue to be recognized for accounting purposes. - FY2021-Q1RestatedAnnual report
「There were no new business or other risks during the cumulative first-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2020-Q3MaterialisedAnnual report
「Provision for contract losses — 3,639」
The company recorded a provision for contract losses of ¥3.639 million at the end of the current third-quarter accounting period, indicating that the risk of cost overruns and losses on development projects has been recognized for accounting purposes. - FY2020-Q2MaterialisedAnnual report
「Provision for contract losses — 2,026」
The company recorded a provision for contract losses of ¥2.026 million at the end of the current second-quarter accounting period. There was no balance at the end of the previous fiscal year, and the provision increased from ¥1.726 million at the end of the previous quarter. - FY2020-Q1MaterialisedAnnual report
「Provision for contract losses — 1,726」
Although there was no balance at the end of the previous fiscal year, the company recorded a provision for contract losses of ¥1.726 million at the end of the current first-quarter accounting period. - FY2019RestatedAnnual report
「Demand for development services in this industry consists largely of projects undertaken under lump-sum contract arrangements. The company may record a loss if work hours increase beyond the estimate made when an order was received. In addition, delays in delivery or failure to deliver ultimately could result in liability for damages. The systems development projects accepted by the company are mostly relatively small, and the risk of incurring loss-making projects that would have a material impact on results is considered low.」
The company recognizes the risks of cost overruns, delivery delays and claims for damages, and reaffirms its assessment that the risk of significant loss-making projects is low because most projects are relatively small. - FY2019-Q3RestatedAnnual report
「There were no new business or other risks during the cumulative third-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2019-Q2RestatedAnnual report
「There were no new business or other risks during the cumulative second-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2019-Q1RestatedAnnual report
「There were no new business or other risks during the cumulative first-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2018WorsenedAnnual report
「To provide for future losses related to contracts received, the company records, as of the end of the fiscal year, the estimated losses from the following fiscal year onward for contracts for which future losses are expected and the amount of those losses can be reasonably estimated.」
In connection with the risk of cost overruns and losses on development projects, the company recorded a provision for contract losses of ¥4.554 million in the current period. Expected future losses have been recognized for accounting purposes. - FY2018-Q3RestatedAnnual report
「There were no new business or other risks during the cumulative third-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2018-Q2RestatedAnnual report
「There were no new business or other risks during the cumulative second-quarter period. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or significant changes regarding the risks of cost overruns, delivery delays and claims for damages on development projects. - FY2017MitigatedAnnual report
「Demand for development services in this industry consists largely of projects undertaken under lump-sum contract arrangements. The company may record a loss if work hours increase beyond the estimate made when an order was received. In addition, delays in delivery or failure to deliver ultimately could result in liability for damages. The systems development projects accepted by the company are mostly relatively small, and the risk of incurring loss-making projects that would have a material impact on results is considered low.」
The company recognizes the risks of cost overruns, delivery delays and claims for damages, but assesses the risk of significant loss-making projects as low because its own projects are generally relatively small. - FY2016First statedAnnual report
「Demand for development services in this industry consists largely of projects undertaken under lump-sum contract arrangements. The company may record a loss if work hours increase beyond the estimate made when an order was received. In addition, delays in delivery or failure to deliver ultimately could result in liability for damages.」
The company identifies excess work hours, losses, delivery delays and inability to deliver as risks associated with development projects under lump-sum contracts.