Uncertainty in the Valuation of Intangible Assets and Goodwill Related to Business Combinations
First written in FY2026-H1. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 1 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Restated".
- FY2026RestatedAnnual report
「The main components of goodwill are the synergies with existing businesses and excess earning power expected to arise from the acquisition.」
In connection with the acquisition of Infocom, the company recognized goodwill of ¥28,432 million and customer-related assets of ¥26,963 million. The valuations were based on a business plan covering up to 5 years, a growth rate of 1.6%, and a discount rate of 10.76%, among other assumptions, and the company continues to disclose the risk of valuation adjustments resulting from changes in key assumptions. - FY2026-H1First statedAnnual report
「Fair value of assets acquired and liabilities assumed through business combinations (Note 6, “Business Combinations”) Our group measures assets acquired and liabilities assumed through business combinations at fair value on the acquisition date. The future cash flows underlying the fair value calculations reflect the time value of money and the specific risks of the assets through the discount rate. Although fair value is calculated based on management’s best estimates, it may be affected by future changes in uncertain economic conditions. This creates a risk of material adjustments to the valuation of intangible assets and goodwill.」
In connection with the Infocom business combination, the company newly described the fair value measurement of acquired assets and assumed liabilities and the risk of material adjustments to the valuation of intangible assets and goodwill resulting from future changes in economic conditions.