Risk of Underperformance and Asset Impairment from Investments in New Businesses and Acquisitions
First written in FY2018. 2 of 4 entries say "Materialised", first in FY2021. Latest entry: FY2022.
S-Pool 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 2020: 28 of 84 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2022MaterialisedAnnual report
「The company recognized ¥30 million in gains on the sale of investment securities as extraordinary income and ¥47 million in losses on the disposal of fixed assets and ¥193 million in valuation losses on investment securities as extraordinary losses. As a result, net income attributable to owners of the parent was ¥1,809 million, down ¥71 million from the previous consolidated fiscal year.」
Valuation losses on investment securities increased from ¥20 million in the previous fiscal year to ¥193 million, further demonstrating that declines in the value of investee companies and valuation loss risks have materialized in the results. - FY2021MaterialisedAnnual report
「The company recognized a ¥20 million valuation loss on investment securities.」
The company recognized a ¥20 million valuation loss on investment securities, demonstrating that declines in the value of investee companies and valuation loss risks have materialized in its results. - FY2019RestatedAnnual report
「Damage to acquired assets or declines in profitability could affect the Group's performance through impairment of goodwill and fixed assets, valuation losses on shares of affiliates and other factors.」
The company continues to disclose the risks of failing to meet plans for new businesses and acquisition investments, asset impairment, and impairment and valuation losses. - FY2018First statedAnnual report
「When launching new businesses or services, the Group conducts careful environmental and market analyses before commercializing them. However, after a business is launched, it may not necessarily proceed as planned, and unforeseen events could have a material impact on the Group's performance. …Damage to acquired assets or declines in profitability could affect the Group's performance through impairment of goodwill and fixed assets, valuation losses on shares of affiliates and other factors.」
The company has disclosed for the first time in a systematic manner the risk of failing to meet plans for new businesses and the possibility of impairment and valuation losses resulting from asset damage or declining profitability at acquired businesses and investee companies.