Risk of Impairment of Fixed Assets and Held Securities
First written in FY2017. 8 of 12 entries say "Materialised", first in FY2019-Q3. Latest entry: FY2026.
CVS Bay Area moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2019: 24 of 52 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The Group groups assets using stores or facilities as the basic units, as the smallest units generating cash flows. Based on this grouping, the Company conducted impairment accounting procedures and, because the profitability of its office building held for lease declined significantly due to major repairs and rising prices during the current consolidated fiscal year, reduced its carrying amount to its recoverable amount. The reduction of ¥617.344 million was recognized as an impairment loss under extraordinary losses.」
In addition to hotel facilities and other assets, the Company recognized a ¥617.344 million impairment loss on an office building held for lease due to declining profitability. It also recognized an impairment loss of ¥91.688 million on securities. - FY2025WorsenedAnnual report
「The business hotel facility in Ichikawa and the outdoor resort facility in Narita are both owned by the Company and involve substantial capital investment, including construction costs. If planned earnings cannot be secured in the future, impairment treatment for fixed assets may become necessary, and the facilities also face the risk of impairment caused by earthquakes.」
In addition to existing hotel fixed assets, the Company explicitly identified the outdoor resort facility in Narita, a substantially invested asset, as subject to impairment and value-impairment risk. - FY2023-Q3MaterialisedAnnual report
「In the “Other Businesses” segment, the Company recognized an impairment loss on fixed assets. The impairment loss recognized during the nine-month period of the current fiscal year was ¥13.915 million.」
The Other Businesses segment recognized a ¥13.915 million impairment loss on fixed assets, resulting in an additional impairment of fixed-asset value. - FY2022MaterialisedAnnual report
「Based on this grouping, the Company conducted impairment accounting procedures and reduced the carrying amounts of stores and other assets whose operating results had remained negative to their recoverable amounts. The reduction of ¥103.443 million was recognized as an impairment loss under extraordinary losses.」
The Company recognized a ¥103.443 million impairment loss on fixed assets. It explained that impairment treatment had already been applied to almost all fixed assets at its unit-style hotels. - FY2021-Q3MaterialisedAnnual report
「In the “Hotel Business” segment, the Company recognized an impairment loss on fixed assets. The impairment loss recognized during the nine-month period of the current fiscal year was ¥81.531 million.」
The Company recognized an ¥81.531 million impairment loss on fixed assets in the hotel business. It also recorded provisions for closure losses at 2 unit-style hotels, as impairment of fixed assets and facility value continued. - FY2020MaterialisedAnnual report
「Impairment was recognized on almost all of the relevant fixed assets.」
Regarding the impairment of fixed assets at the unit-style hotels, impairment was recognized on almost all fixed assets held following a substantial deterioration in profitability. - FY2019WorsenedAnnual report
「The Group holds fixed assets, including facilities and interior assets required to operate its hotel business, as well as investment property. At its unit-style hotels, the Group has recognized impairment on part of these fixed assets for 2 consecutive fiscal years at hotels that had been open for 2 full years, due to the increased allocation of head office expenses following the substantial downsizing of the convenience-store business operated by the hotel business.」
Impairment of the unit-style hotels' fixed assets continued for the second consecutive fiscal year, and an impairment loss of ¥412 million was recognized in the current fiscal year. The impairment of fixed asset value increased. - FY2019-Q3MaterialisedAnnual report
「Impairment loss ¥5.466 million」
An impairment loss of ¥5.466 million was recognized in the quarterly consolidated statement of income. The details of the assets affected were not identified in the main text. - FY2018-Q3WorsenedAnnual report
「The Company has identified indicators of impairment because monetization is lagging behind the plan at the time of opening. It is currently reviewing its earnings plan, and depending on the contents of the newly formulated plan, there is a risk that impairment may be required at the end of the current fiscal year for part of the relevant fixed assets, totaling approximately ¥1.3 billion based on the estimate as of the end of the fiscal year ending February 2018.」
Regarding the risk of impairment of fixed assets, the Company identified indicators of impairment at the hotel facility and quantified the potential exposure at approximately ¥1.3 billion. No impairment has yet been recognized. - FY2017First statedAnnual report
「A deterioration in earnings due to changes in the competitive environment, or an inability to secure the expected level of earnings, may require impairment of fixed assets. The Company also faces the risk of impairment in value due to earthquakes.」
The Company identified deterioration in facility earnings, impairment and loss of value of fixed assets due to earthquakes, and price fluctuations in securities held as risks.