Impairment Risk from Declining Profitability at an Operating Location
First written in FY2016. 7 of 11 entries say "Materialised", first in FY2017. Latest entry: FY2026.
Applied moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 25 of 32 companies on the "Worse" side.
15 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Because the asset group is not expected to generate future cash flows exceeding the investment amount, its carrying amount was reduced to its recoverable amount, and the reduction of ¥0 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss was recognized for the Howz Ito store, but the amount was ¥0 million, down from ¥2 million in the previous fiscal year. - FY2025MaterialisedAnnual report
「Because the asset group is not expected to generate future cash flows exceeding the investment amount, its carrying amount was reduced to its recoverable amount, and the reduction of ¥2 million was recognized as an impairment loss under extraordinary losses.」
Impairment losses of ¥2 million were recognized for the Howz Ito and Howz Kumamoto stores. Although the impairment risk remains present, the amount decreased from ¥220 million in the previous fiscal year. - FY2024MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥220 million was recognized as an impairment loss under extraordinary losses.」
For the Howz Hibikino and Howz Kumamoto stores, future cash flows were not expected, and an impairment loss of ¥220 million was recognized. - FY2023MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥119 million was recognized as an impairment loss under extraordinary losses.」
For the Howz Kurume and Howz Ito stores, future cash flows were not expected, and an impairment loss of ¥119 million was recognized. - FY2022MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥97 million was recognized as an impairment loss under extraordinary losses.」
For the Howz Ito and Howz Dazaifu stores, future cash flows were not expected, and an impairment loss of ¥97 million was recognized. - FY2021RestatedAnnual report
「The profitability of our group’s stores and sales offices may decline and they may become unprofitable due to factors such as competitors opening locations near our operating locations. If an operating location reaches a point where recovery of the initial and additional investments is no longer expected, the company may recognize impairment on the fixed assets held by applying impairment accounting to business-use fixed assets.」
The company continues to identify impairment risk from declining profitability at operating locations. No impairment loss was recognized during the current consolidated fiscal year. - FY2020MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥225 million was recognized as an impairment loss under extraordinary losses.」
For the Howz Ichinomiya store, future cash flows were not expected, and an impairment loss of ¥225 million was recognized. The impairment risk from declining profitability at operating locations has materialized again. - FY2019MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥153 million was recognized as an impairment loss under extraordinary losses.」
For the Howz Ito and Howz Dazaifu stores, future cash flows were not expected, and an impairment loss of ¥153 million was recognized. - FY2018RestatedAnnual report
「The profitability of our group’s stores and sales offices may decline and they may become unprofitable due to factors such as competitors opening locations near our operating locations.」
The company continues to identify declining profitability at operating locations and the potential for impairment as risks. No impairment loss was incurred during the current consolidated fiscal year. - FY2017MaterialisedAnnual report
「Because future cash flows from the above asset group are not expected to exceed the investment amount, the carrying amount of the asset group was reduced to its recoverable amount, and the reduction of ¥138 million was recognized as an impairment loss under extraordinary losses.」
For the Applied Kagoshima store, future cash flows were not expected to exceed the investment amount, and an impairment loss of ¥138 million was recognized on the buildings and land. - FY2016First statedAnnual report
「If an operating location reaches a point where recovery of the initial and additional investments is no longer expected, the company may recognize impairment on the fixed assets held by applying impairment accounting to business-use fixed assets.」
Potential impairment if the profitability of an operating location declines due to competition or other factors, making recovery of the investment impossible.