Risk of balance-sheet recognition of lease assets and liabilities and a lower equity ratio following changes to lease accounting standards
First written in FY2021. 1 of 3 entries say "Restated". Latest entry: FY2024.
Care Twentyone moved to the "Worse" side of this theme in 2025.
1 other company's latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「The “Accounting Standard for Leases” and related standards are scheduled to be applied from the beginning of the fiscal year ending October 2028. The amount of the impact of applying the “Accounting Standard for Leases” and related standards on the consolidated financial statements is currently being assessed.」
The situation has become more concrete: instead of merely noting the possibility of future changes to the standards, a new standard has been issued requiring lessees to recognize right-of-use assets and liabilities for all leases, with application scheduled from the fiscal year ending October 2028 and the impact currently under assessment. - FY2022RestatedAnnual report
「If lease accounting standards are revised in the future to require operating leases to be recognized as assets and liabilities, amounts equivalent to the right-of-use of buildings and land will be recognized as assets and liabilities on the balance sheet.」
The company continues to disclose the potential effects of changes to operating lease accounting standards on right-of-use assets and liabilities, the equity ratio and impairment. - FY2021First statedAnnual report
「If lease accounting standards are revised in the future so that assets and liabilities must also be recognized for operating leases, amounts equivalent to the right to use buildings and land would be recognized as assets and liabilities on the balance sheet. This change could reduce our group’s equity ratio from its current level, and if the increase in assets subject to impairment testing required the recognition of impairment losses, our financial position and operating results could be affected.」
Identifies as a new risk the potential impact of changes to operating-lease accounting standards on currently unrecognized right-of-use assets and liabilities, the equity ratio and impairment.