Risks of Contingent Liabilities and Impairment Following M&A
First written in FY2024. 2 of 3 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
60 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If, after an M&A transaction, contingent liabilities arise or changes in the business environment prevent the business from developing as planned, impairment losses may be recognized on goodwill or shares of affiliated companies...」
The risks of contingent liabilities, poor post-M&A performance and impairment, and the response through preliminary due diligence, are reiterated. - FY2025-H1RestatedAnnual report
「During the interim accounting period, no new business risks arose. There were also no material changes to the business risks described in the securities report for the previous fiscal year.」
The company explicitly states that there were no material changes to the post-M&A risks of contingent liabilities and impairment. - FY2024First statedAnnual report
「If, after an M&A transaction, contingent liabilities arise or changes in the business environment prevent the business from developing as planned, impairment losses may be recognized on goodwill or shares of affiliated companies, affecting our financial condition and operating results.」
While using M&A to expand the business, the company identifies the risks of poor post-acquisition performance and impairment.