Recoverability of goodwill arising from acquisitions
First written in FY2017-Q3. 4 of 5 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2023.
Takachiho Koheki moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 46 of 100 companies on the "Worse" side.
53 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「Because Guardfire Limited and Takachiho America, Inc. fell short of plan in terms of revenue and profit, the company assessed future recoverability and recognized the full balance of fixed assets as an impairment loss.」
Following the failure of Guardfire and Takachiho America to meet plan, the company recognized an impairment loss of ¥6.897 million on the full balance of fixed assets. Recoverability issues related to acquisitions and overseas businesses continue to arise. - FY2020MaterialisedAnnual report
「Although completed projects, including large projects received in the previous fiscal year, progressed steadily at Guardfire Limited (Thailand) and Guardfire Singapore Pte. Ltd. (collectively, “Guardfire”), revenue and profit were materially affected by the stagnation of new plant construction due to persistently low crude oil prices and slowing demand for petrochemical products. Because the company consequently fell short of plan, it carefully assessed Guardfire’s future recoverability and recognized the full balance of fixed assets, including goodwill, as an impairment loss. Goodwill: ¥245.975 million」
At Guardfire, completed projects progressed, but the company continued to fall short of plan because new plant construction stagnated. It recognized the full balance of fixed assets, including goodwill of ¥245.975 million, as an impairment loss. Takachiho America also recognized an impairment loss on the full balance of its fixed assets. - FY2019WorsenedAnnual report
「However, because revenue and profit have fallen short of plan, the company carefully assessed the future recoverability of fixed assets, including Guardfire’s goodwill, reduced part of the assets to their recoverable amount and recognized an impairment loss. Goodwill: ¥184 million」
Although Guardfire won large projects, revenue and profit continued to fall short of plan, and the company recognized an additional impairment loss of ¥184 million on goodwill during the fiscal year. - FY2018MaterialisedAnnual report
「The performance of Guardfire Limited and Guardfire Singapore Pte. Ltd., acquired in November 2014 (collectively, “Guardfire”), has fallen short of plan as construction plans for oil and power plants in the ASEAN countries, particularly Thailand, were delayed amid the prolonged downturn in crude oil prices over the past 3 years. After carefully assessing future recoverability in light of these circumstances, the company reduced part of the assets to their recoverable amount and recognized an impairment loss.」
Following Guardfire’s failure to meet its plan, the company recognized an impairment loss of ¥253 million on goodwill. The prolonged downturn in crude oil prices and delays in oil and power plant construction plans have materialized as recoverability risks related to the acquisition. - FY2017-Q3MaterialisedAnnual report
「After carefully assessing the recoverability of goodwill arising from the 2012 acquisition, once 4.5 years of a scheduled five-year amortization period had been completed, the company accelerated amortization by six months and recognized an impairment loss for the full remaining carrying amount of ¥87 million.」
After assessing the recoverability of goodwill arising from the acquisition, the company accelerated amortization by six months and recognized an impairment loss of ¥87 million.