Risk of Impairment in the Vietnam Business and Impairment Loss on Investments in Affiliates
First written in FY2022. 2 of 4 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2018: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Because business performance remained strong during the current consolidated fiscal year, the company did not identify any indication of impairment. However, if changes in uncertain future economic conditions require the business plan to be revised, an impairment loss may be recognised in the following consolidated fiscal year.」
The Vietnam business did not identify any indication of impairment in the current consolidated fiscal year because performance was strong. However, the possibility of impairment resulting from a future revision of plans remains. - FY2024RestatedAnnual report
「Because operating income for the current consolidated fiscal year was below the initial budget, the company identified an indication of impairment and conducted an impairment test. For the impairment test, the recoverable amount of the asset was measured using its value in use, calculated as the present value of estimated future cash flows discounted to present value. The company compared this amount with the carrying amount and determined that no impairment loss should be recognised because the recoverable amount exceeded the carrying amount.」
The Vietnam business conducted an impairment test after operating income fell below the initial budget, but did not recognise an impairment loss in the current fiscal year because the recoverable amount exceeded the carrying amount. - FY2023MitigatedAnnual report
「For the impairment test, the recoverable amount of the asset was measured using its value in use, calculated as the present value of estimated future cash flows discounted to present value. The company compared this amount with the carrying amount and determined that no impairment loss should be recognised because the recoverable amount exceeded the carrying amount.」
For the Vietnam business, which recorded a valuation loss on investments in affiliated companies in the previous fiscal year, the company determined that no impairment loss on property, plant and equipment should be recognised in the current fiscal year. However, it stated that the possibility of an impairment loss remains if future plans are not achieved. - FY2022MaterialisedAnnual report
「As a result, the company determined that the possibility of recovering the realisable value was not sufficiently supported by reliable evidence and recorded a valuation loss on investments in affiliated companies of ¥1,210 million in the current fiscal year.」
Because of the impact of COVID-19 and other factors, the Vietnam subsidiary required more time to improve production efficiency and expand sales channels, and the company recorded a ¥1,210 million valuation loss on investments in affiliated companies.