Goodwill Impairment Risk Associated with Acquisitions
First written in FY2023. 1 of 2 entries say "Worsened", first in FY2025. Latest entry: FY2025.
Sds Holdings 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 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Goodwill recognised in connection with the acquisition of 株式会社イエローキャピタルオーケストラ is recognised as the company’s excess earning power and is amortised over the 10-year period during which its benefits are expected to emerge, based on the medium-term business plan prepared at the time of acquisition. Goodwill recognised in connection with the acquisition of a business by 株式会社ONE EXE is recognised as the business’s excess earning power and is amortised over the 20-year period during which its benefits are expected to emerge, based on the medium-term business plan prepared at the time of acquisition.」
The goodwill balance increased to ¥384.638 million. In addition to the amount related to the acquisition of the existing イエローキャピタルオーケストラ, ¥308.123 million in goodwill was recognized in connection with ONE EXE's acquisition of the business. Exposure to impairment risk has increased if performance after the acquisition and business transfer falls below plan. - FY2023First statedAnnual report
「Goodwill: ¥106.630 million The goodwill recognized in connection with the acquisition of Yellow Capital Orchestra Co., Ltd. is treated as its excess earning power and is amortized over 10 years, the period during which the benefits are expected to arise based on the medium-term business plan prepared at the time of acquisition. If the company’s performance falls below the plan at the time of investment, the excess earning power may be deemed impaired, potentially having a material impact on the financial statements for the following fiscal year.」
The Company amortizes ¥106.630 million of goodwill from the acquisition of Yellow Capital Orchestra Co., Ltd. over 10 years and newly disclosed the potential impact on the financial statements if actual performance falls below the investment plan.