Risk of impairment of goodwill and other assets due to the acquired company’s underperformance
First written in FY2020. 2 of 3 entries say "Materialised", first in FY2022. Latest entry: FY2026.
Alsok moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2026: 17 of 32 companies on the "Worse" side.
25 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「As a result of an assessment of the recoverability of goodwill at PT. Shield-On Service Tbk and its 7 subsidiaries based on future cash flows, recoverability was not recognized. The carrying amount was therefore reduced to the recoverable amount based on value in use, and an impairment loss of ¥494 million was recorded as an extraordinary loss.」
Concerns regarding the acquired companies’ performance and future cash flows materialized as a ¥494 million impairment loss on goodwill at PT. Shield-On Service Tbk and other companies. - FY2022MaterialisedAnnual report
「As the recoverability of some goodwill was not recognized, the Group recorded an impairment loss of ¥192 million.」
Concerns regarding the acquired company’s business plan and earnings capacity materialized as a goodwill impairment loss, and ¥192 million was recorded. An impairment loss of ¥107 million was also recorded for nursing care facilities. - FY2020First statedAnnual report
「The Group may acquire companies to expand its business into adjacent fields from its original security services business and for other purposes. If the performance of an acquired company deviates significantly from the business plan prepared when the acquisition was decided, impairment losses could arise on goodwill, intangible fixed assets such as customer-related assets, and other tangible fixed assets, affecting the Group’s business performance.」
It separately describes the impairment risk for goodwill, customer-related assets and tangible fixed assets if an acquired company underperforms its plan following the expansion of business areas through M&A.