Goodwill Valuation and Impairment Risk Associated with Acquisitions
First written in FY2021. 5 of 8 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Kitahama Capital Partners moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Of this amount, the goodwill balance related to 株式会社トラストコーポレーション at the end of the fiscal year under review was ¥420.475 million, representing 6.2% of total assets.」
The goodwill balance increased from ¥342.388 million to ¥702.367 million following the acquisition of 株式会社トラストコーポレーション and other transactions. The company states that there are indications of impairment relating to the Trust Corporation business and that differences in future sales forecasts and cash flows may affect impairment losses. - FY2026-H1WorsenedAnnual report
「Consolidated subsidiaries 山陽小野田バイオマス燃料供給株式会社 and Sanyo Engineering & Construction Inc., which belong to the Investment Business segment, recognized an impairment loss on goodwill of ¥12.544 million. In addition, as described under “Material impairment losses on non-current assets,” the company acquired shares of 株式会社トラストコーポレーション, making it a consolidated subsidiary in the Investment Business segment, and recognized ¥442.605 million of goodwill.」
The company recognized an additional ¥442.605 million of goodwill following the acquisition of 株式会社トラストコーポレーション, increasing the goodwill balance to ¥741.586 million. At the same time, it recognized an impairment loss of ¥12.544 million on goodwill at existing subsidiaries. - FY2025WorsenedAnnual report
「Amount recorded in the consolidated financial statements for the fiscal year under review Goodwill 342,388 (omitted) The assumptions used in preparing the estimates were determined based on management's best estimates and judgment. However, future uncertain economic conditions and the business environment may adversely affect the valuation of goodwill.」
The goodwill balance increased from ¥43.573 million to ¥342.388 million following the acquisition of 忍者エナジー and other transactions. The scope of items subject to impairment testing has expanded, as fluctuations in future sales forecasts, capital expenditure and cash flows may affect the testing. - FY2025-H1WorsenedAnnual report
「Amount of goodwill recognized ¥329.990 million (omitted) Amortization method and period Not determined at this time.」
The company recognized ¥329.990 million of goodwill in connection with the acquisition of 忍者エナジー合同会社. The goodwill balance increased from ¥43.573 million to ¥380.981 million, while the amortization method and period had not yet been determined. - FY2024WorsenedAnnual report
「Amount recorded in the consolidated financial statements for the fiscal year under review Goodwill 43,573 The assumptions used in preparing the estimates were determined based on management's best estimates and judgment. However, future uncertain economic conditions and the business environment may adversely affect the valuation of goodwill.」
Goodwill increased from ¥4.723 million to ¥43.573 million following the acquisition of Sanyo Engineering & Construction Inc. and Martial ACE Holdings. The risk that fluctuations in future business plans, sales forecasts and cash flows may affect impairment testing has increased. - FY2024-Q2Additional goodwill recognizedAnnual report
「Amount of goodwill recognized ¥17.668 million (omitted) Straight-line amortization over 3 years」
The company recognized ¥17.668 million of goodwill in connection with the acquisition of Sanyo Engineering & Construction Inc. and began straight-line amortization over 3 years. The scope of goodwill subject to acquisition-related valuation and impairment considerations was expanded, but no impairment loss was recognized during the quarter. - FY2023RestatedAnnual report
「As part of its strategic measures, the group carries out acquisitions and investments, and records as goodwill in its consolidated balance sheet the excess earning power of the target companies arising from these business combination transactions.」
The company continued to disclose the risk that fluctuations in future business plans, sales forecasts, capital expenditure and cash flows related to goodwill arising from acquisitions and investments may affect impairment testing. - FY2021First statedAnnual report
「The assumptions used in preparing the estimates were determined based on management's best estimates and judgment. However, future uncertain economic conditions and the business environment may adversely affect the valuation of goodwill. If adversely affected, a review of future business plans and changes in undiscounted future cash flows may have a material impact on the determination of whether to recognize an impairment loss and the measurement of any impairment loss in the consolidated financial statements for the following fiscal year.」
For goodwill recognized in connection with acquisitions and investments, the company has newly identified fluctuations in future economic conditions, business plans, sales forecasts and cash flows as an independent material accounting estimate that may affect impairment testing. During the period, it also recognized an impairment loss of ¥321.584 million on goodwill related to the solar power generation business.