Impairment risk arising from the outcome of Agri Flower production measures
First written in FY2022. 2 of 5 entries say "Worsened", first in FY2023. Latest entry: FY2026.
Beauty Kadan Holdings moved to the "Worse" side of this theme in 2023.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The company continues to pursue measures to secure production volumes and reduce costs through cost improvements, but the success of these measures remains uncertain. If production volumes are not secured and cost improvements do not progress as expected, and the company's earnings or operating environment deteriorates, it may become necessary to recognize an impairment loss.」
The Company continues to disclose Agri Flower's measures to secure production volumes and improve costs, as well as the risk of additional impairment losses if progress is inadequate. - FY2025MaterialisedAnnual report
「An impairment loss was recognized because indications of impairment were identified for certain asset groups held by the company and the total undiscounted future cash flows expected to be generated by those asset groups fell below their carrying amounts.」
For アグリフラワー, the impairment risk previously disclosed as a future possibility materialized, and an impairment loss of ¥3.269 million was recognized on agricultural assets. - FY2024WorsenedAnnual report
「Although it was determined that there were indications of impairment of certain tangible fixed assets held by the company, no impairment loss was recognized because the total undiscounted future cash flows expected to be generated by these tangible fixed assets exceeded their carrying amounts. …The success or failure of these measures involves uncertainty and may have a material impact on the company's earnings and loss position and business environment. As a result, an impairment loss may need to be recognized.」
アグリフラワー continued to record operating losses, and it was determined that there were indications of impairment of its tangible fixed assets. No impairment loss was recognized this time, but the possibility of future recognition continues to be disclosed. - FY2023WorsenedAnnual report
「However, because the company recorded operating income in the previous consolidated fiscal year, is expected to record operating income from the following consolidated fiscal year onward, and does not anticipate significant deterioration in the business environment, we determined that there were no indications of impairment of the tangible fixed assets held by the company. The company continues to pursue measures to secure production volume and reduce costs through cost improvements, but the success or failure of these measures involves uncertainty and may have a material impact on the company's earnings and loss position and business environment.」
アグリフラワー changed from recording operating income in the previous fiscal year to recording an operating loss in the current fiscal year, and continues to disclose the uncertainty surrounding measures to secure production volume and improve costs, as well as the possibility of future impairment. However, it does not state that an impairment loss was recognized in the current fiscal year. - FY2022First statedAnnual report
「The company continues to pursue measures to secure production volume and reduce costs through cost improvements, but the success or failure of these measures involves uncertainty and may have a material impact on the company's earnings and loss position and business environment. As a result, the company may meet the criteria for an indication of impairment, making recognition of an impairment loss necessary.」
The company disclosed that if アグリフラワー's measures to secure production volume and improve costs are unsuccessful, an impairment loss on fixed assets may be recognized through the impact on earnings and loss and the business environment.