Underestimation of the Investment Recovery Plan and Overinvestment
First written in FY2020-Q3. 3 of 4 entries say "Restated". Latest entry: FY2023.
No other company in this theme has enough history to compare yet.
- FY2023RestatedAnnual report
「In addition, the outlook for the timing of containment of COVID-19 is uncertain. If containing the infection takes longer, it may become necessary to recognize an impairment loss in the next consolidated fiscal year.」
The risk of additional impairment losses based on estimates of the number of visitors, the number and average value of wedding parties, hotel occupancy rates and average room rates, among other factors, continued. - FY2022RestatedAnnual report
「In addition, the outlook for the spread and timing of containment of COVID-19 is uncertain. If containing the infection takes longer, it may become necessary to recognize an impairment loss in the next consolidated fiscal year.」
The disclosure continued to include the risk of additional impairment losses based on assumptions regarding the number of visitors, the number and average value of wedding parties, hotel occupancy rates and average room rates, and the timing of containment of the infection. - FY2021RestatedAnnual report
「Although the company considers undiscounted future cash flows to be its best estimates as of the present time, estimates based on key assumptions, such as the number of visitors, involve uncertainty, and actual future results may differ from the estimates. In addition, the outlook for the spread and timing of containment of COVID-19 is uncertain. If containing the infection takes longer, it may become necessary to recognize an impairment loss in the next consolidated fiscal year.」
Regarding impairment risk, the company reconfirmed the number of visitors, the number and average value of wedding parties, hotel occupancy rates and average room rates, and the timing of containment of the infection as key uncertain assumptions, and disclosed the possibility of additional impairment losses. - FY2020-Q3MaterialisedAnnual report
「The factors that led to the recognition of the impairment loss were overly optimistic estimates in the investment recovery plan at the time of investment and excessive investment.」
The company newly stated that insufficient estimates in the investment recovery plan and excessive investment were the reasons for recognizing impairment losses on 8 stores.