Goodwill Valuation and Impairment Risks Associated with the Acquisition of 空気設備工業株式会社

「The company assesses whether indicators of impairment exist based on actual results, including income and losses arising from operating activities. If an indicator of impairment is identified, it calculates the undiscounted future cash flows for the period corresponding to the remaining amortization period of the goodwill, based on the business plan, and compares them with the carrying amount to determine whether an impairment loss must be recognized. No indicators of impairment were identified for goodwill during the current consolidated fiscal year.」

「No indicators of impairment have been identified for goodwill during the current consolidated fiscal year. The key assumption in the estimates underlying the business plan, which are required to assess the reasonableness of the acquisition cost and determine impairment, is the forecast of future sales. If future uncertain economic conditions and the company's operating performance cause a significant deviation from the business plan, this may constitute an indicator of impairment, potentially requiring a determination as to whether an impairment loss should be recognized.」