Risk of Goodwill Impairment and Write-Downs of Shares in Subsidiaries
First written in FY2024. 1 of 3 entries say "Materialised", first in FY2025. Latest entry: FY2026-H1.
Material Group moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Property, plant and equipment and intangible assets increased by ¥1,567,864 thousand from the end of the previous consolidated fiscal year to ¥3,009,447 thousand. The main factors included a ¥980,235 thousand increase in goodwill and a ¥577,001 thousand increase in deferred tax assets following the acquisition of shares in Trepro Co., Ltd.」
The acquisition of Trepro Co., Ltd. increased goodwill from ¥753,553 thousand to ¥1,733,788 thousand, expanding the goodwill balance subject to impairment assessment. No material impairment loss was reported in the interim segment information. - FY2025MaterialisedAnnual report
「The Company recognized a net loss for the fiscal year because it recorded a ¥651,408 thousand impairment loss on shares in an affiliate following a significant decline in their underlying value.」
While no indication of goodwill impairment was identified, the underlying value of Rooms Co., Ltd.’s shares declined and a ¥651,408 thousand impairment loss was recognized. Goodwill totaled ¥753,553 thousand. - FY2024First statedAnnual report
「The Group reported goodwill of ¥571,105 thousand on its consolidated balance sheet at the end of the fiscal year ended August 2024. If it determines that sufficient future cash flows will not be generated due to changes in the business environment after an M&A transaction or other factors, it may need to recognize an impairment loss, which may affect its results.」
The Group disclosed goodwill of ¥571,105 thousand and the possibility of impairment if future cash flows prove insufficient. It determined that there were no indications of impairment during the fiscal year.