Goodwill Valuation and Contract Acquisition Risks Following the Acquisition of 株式会社エヌ・ケイ
First written in FY2022. 1 of 4 entries say "Restated". Latest entry: FY2026.
Quest moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
4 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Goodwill and customer-related assets were recognised as a result of the acquisitions of 株式会社エヌ・ケイ and 株式会社セプト, respectively. If goodwill and customer-related assets are deemed to show indications of impairment, the company determines whether an impairment loss must be recognised.」
The scope of goodwill valuation risk following the acquisitions expanded from 株式会社エヌ・ケイ to 株式会社セプト as well. Goodwill stood at ¥411.964 million and customer-related assets at ¥378.876 million. - FY2024RestatedAnnual report
「If goodwill and customer-related assets are deemed to show indications of impairment, the company determines whether an impairment loss must be recognised. If these amounts require revision due to progress against the business plan resulting from changes in the future business environment and other factors, they may have a material impact on the consolidated financial statements for the following consolidated fiscal year and thereafter.」
The company continues to disclose valuation risks relating to goodwill and customer-related assets arising from the acquisition of 株式会社エヌ・ケイ. The period-end balances were goodwill of ¥229.437 million and customer-related assets of ¥463.070 million. - FY2023-Q3Finalisation of Provisional Accounting Treatment and Goodwill ReductionAnnual report
「As a result, the goodwill provisionally calculated at ¥622.525 million at the end of the previous consolidated fiscal year decreased by ¥357.966 million to ¥264.558 million. Customer-related assets increased by ¥547.265 million, deferred tax liabilities by ¥189.299 million (before offsetting against deferred tax assets of ¥17.575 million), and total assets by ¥171.724 million.」
The provisional accounting treatment for the business combination involving 株式会社エヌ・ケイ was finalised, reducing provisional goodwill of ¥622.525 million by ¥357.966 million to ¥264.558 million. The company does not state that the risks relating to future progress against the business plan or the expected number of contracts to be acquired have disappeared. - FY2022First statedAnnual report
「The amount of goodwill may be affected by progress against the business plan resulting from changes in the future business environment and other factors. If the expected number of contracts to be acquired, a key assumption reflected in the business plan, declines and the excess earning power is deemed to have deteriorated, the goodwill amount may have a material impact on the consolidated financial statements for the following consolidated fiscal year.」
Goodwill of ¥622.525 million was recognised in connection with the acquisition of 株式会社エヌ・ケイ. The company newly disclosed that a decline in the expected number of contracts to be acquired or deterioration in excess earning power due to progress against the business plan could materially affect the valuation of goodwill in the following consolidated fiscal year.