Risk of fixed asset impairment due to lower returns on capital investment
First written in FY2021. 3 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
10 other companies' latest entry also says "Other".
- FY2026Continues with impairment losses at a reduced levelAnnual report
「For store assets whose operating income or loss has deteriorated due to changes in the external environment, including higher raw material prices, the company has reduced their carrying amounts to recoverable amounts and recorded the resulting decreases as impairment losses under extraordinary losses.」
The company recorded an impairment loss of ¥65,424 thousand on store assets whose operating income or loss had deteriorated due to higher raw material prices and other factors. The amount decreased from the previous fiscal year, but the risk continues to materialize. - FY2025MaterialisedAnnual report
「For store assets whose operating income or loss has deteriorated due to changes in the external environment, including higher raw material prices, the company has reduced their carrying amounts to recoverable amounts and recorded the resulting decreases as impairment losses under extraordinary losses.」
Regarding the impairment risk arising from declining returns on capital expenditures, the company actually recorded an impairment loss of ¥287,360 thousand on store assets whose operating income or loss had deteriorated due to higher raw material prices and other factors. - FY2024RestatedAnnual report
「However, if changes in the business environment or other factors cause profitability to decline to the point that recovery of the investment is no longer expected, the carrying amount must be reduced and the resulting decrease recorded as an impairment loss」
The company has reconfirmed the risk of impairment of fixed assets due to declining profitability in capital expenditures for factories, production machinery and stores. It states that although there are indications of impairment for 鎌倉ニュージャーマン, no impairment loss has been recognized. - FY2023RestatedAnnual report
「However, if changes in the business environment or other factors cause profitability to decline to the point that recovery of the investment is no longer expected, the carrying amount must be reduced and the resulting decrease recorded as an impairment loss, which could affect the group's operating results and financial position.」
The company has reconfirmed the risk of impairment of fixed assets due to declining profitability in capital expenditures for factories, production machinery and stores. - FY2022RestatedAnnual report
「However, if changes in the business environment or other factors cause profitability to decline to the point that recovery of the investment is no longer expected, the carrying amount must be reduced and the resulting decrease recorded as an impairment loss, which could affect the company's operating results and financial position.」
The company has reconfirmed the risk of impairment of fixed assets due to declining profitability in capital expenditures for factories, production machinery and stores. - FY2021First statedAnnual report
「However, if changes in the business environment or other factors cause profitability to decline to the point that recovery of the investment is no longer expected, the carrying amount must be reduced and the resulting decrease recorded as an impairment loss, which could affect the company's operating results and financial position.」
The company has, for the first time, separately identified as a major risk the risk of impairment of fixed assets if declining profitability makes recovery of investments in factories, production machinery and stores no longer foreseeable.