Recognition of an Extraordinary Loss from Impairment of Shares in an Affiliated Company (Standalone)
PHARMA FOODS INTERNATIONAL CO., LTD.; equity-method affiliate ONKYO CORPORATION
Because the intrinsic value of shares in ONKYO CORPORATION has declined. In addition, because impairment accounting was performed for goodwill related to the company.
A ¥422 million loss on valuation of shares in an affiliated company is expected to be recognized as an extraordinary loss in the standalone financial statements. In the consolidated financial statements, this valuation loss will be eliminated, while a ¥171 million equity-method investment loss arising from impairment of goodwill related to ONKYO CORPORATION is expected to be recognized as a non-operating expense.
Fiscal year ending July 2026
For the impact of this matter on results for the fiscal year ending July 2026, refer to the separately disclosed Notice Regarding Revisions to Full-Year Earnings Forecast for the Fiscal Year Ending July 2026 issued today.
A ¥422 million loss on valuation of shares in an affiliated company is expected to be recognized as an extraordinary loss in the standalone financial statements for the fiscal year ending July 2026, and a ¥171 million equity-method investment loss is expected to be recognized as a non-operating expense in the consolidated financial statements.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss from Impairment of Shares in an Affiliated Company (Standalone) |
| Subject Entity | PHARMA FOODS INTERNATIONAL CO., LTD.; equity-method affiliate ONKYO CORPORATION |
| Cause | Because the intrinsic value of shares in ONKYO CORPORATION has declined. In addition, because impairment accounting was performed for goodwill related to the company. |
| Amount of Impact on Business Performance | A ¥422 million loss on valuation of shares in an affiliated company is expected to be recognized as an extraordinary loss in the standalone financial statements. In the consolidated financial statements, this valuation loss will be eliminated, while a ¥171 million equity-method investment loss arising from impairment of goodwill related to ONKYO CORPORATION is expected to be recognized as a non-operating expense. |
| Accounting period in which recognized | Fiscal year ending July 2026 |
| Impact on Earnings Forecast | For the impact of this matter on results for the fiscal year ending July 2026, refer to the separately disclosed Notice Regarding Revisions to Full-Year Earnings Forecast for the Fiscal Year Ending July 2026 issued today. |
| Outlook | A ¥422 million loss on valuation of shares in an affiliated company is expected to be recognized as an extraordinary loss in the standalone financial statements for the fiscal year ending July 2026, and a ¥171 million equity-method investment loss is expected to be recognized as a non-operating expense in the consolidated financial statements. |
Items this document does not state (18)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because the intrinsic value of shares in ONKYO CORPORATION declined, the company performed impairment accounting for its shares in the affiliated company. It also performed impairment accounting for goodwill related to the company.