Failure to Meet Post-Acquisition Business Plans and Goodwill Impairment Risk
First written in FY2018. 3 of 6 entries say "Restated". Latest entry: 2026-05-02.
Yoshimura Food Holdings K.K. moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
59 other companies' latest entry also says "Restated".
- 2026-05-02RestatedGeneral Meetings of Shareholders
「The Company determines whether there are indications of impairment of goodwill in accordance with the Accounting Standard for Impairment of Fixed Assets. If impairment indicators are found, it determines whether an impairment loss must be recognized by comparing the total undiscounted future cash flows generated by the asset group, including goodwill, with its carrying amount.」
The annual financial statements reconfirm the existing risk assessment that an impairment loss on goodwill may need to be recognized in the following fiscal year if, for example, the business plan becomes difficult to achieve. - FY2025MaterialisedAnnual report
「When we acquired JSTT SINGAPORE PTE.LTD. and one other company, we recorded goodwill based on their excess earning power. However, their results fell below the business plan initially envisaged. Following a review of the business plan, we determined that no excess earning power could be expected, set the recoverable amount of the goodwill at zero, and recorded ¥767 million as an impairment loss under extraordinary losses.」
Failure to achieve the post-acquisition business plan resulted in an actual impairment loss of ¥767 million on goodwill related to JSTT and others. - FY2024-Q3MaterialisedAnnual report
「When we acquired 純和食品株式会社, a consolidated subsidiary, we recorded goodwill based on its excess earning power. However, its results fell below the business plan initially envisaged. Following a review of the business plan, we determined that no excess earning power could be expected, set the recoverable amount of the goodwill at zero, and recorded ¥73 million as an impairment loss under extraordinary losses.」
純和食品's post-acquisition results fell below the initial plan, and an impairment loss of ¥73 million on goodwill was actually recorded. - FY2023RestatedAnnual report
「In connection with M&A transactions, we conduct thorough due diligence and examine related risks. However, if the business plan envisaged at the time of acquisition fails to progress as planned, the Group's operating results and financial position could be affected by impairment of fixed assets, goodwill and other factors.」
While conducting due diligence, the company continues to face the risk of impairment of fixed assets and goodwill due to failure to achieve post-acquisition business plans. - FY2020RestatedAnnual report
「In connection with M&A transactions, we conduct thorough due diligence and examine related risks. However, if the business plan envisaged at the time of acquisition fails to progress as planned, the Group's operating results and financial position could be affected by impairment of goodwill and other factors.」
We continue to address the risk of failure to achieve post-acquisition business plans and goodwill impairment through due diligence. - FY2018First statedAnnual report
「If problems arise that could not be identified even through advance investigations, such as contingent liabilities at the target company or previously unidentified liabilities, or if the business plan fails to progress as planned, the Group's operating results and financial position could be affected by impairment of goodwill and other factors.」
The possibility of problems emerging after due diligence and impairment of goodwill resulting from failure to achieve the post-acquisition business plan is described.