Failure of New Businesses and Acquisitions to Deliver Results and Resulting Impairment
First written in FY2020. 4 of 7 entries say "Mitigated", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「For the consolidated fiscal year, the company confirmed that there was no significant divergence between the business plan prepared when it initially acquired the business and its actual results for the fiscal year, and that no substantial revisions were necessary to the future projections in the original business plan, and therefore determined that there were no indications of impairment.」
After recording an impairment loss in the comprehensive reuse business in the previous fiscal year, the company determined that, in the current fiscal year, there was no significant divergence between the acquired business and its plan and no indication of impairment. - FY2024MaterialisedAnnual report
「The asset group related to the comprehensive reuse business referred to above had been performing below the originally prepared business plan. Following a review of the future business plan, the company determined that recovery of the investment could no longer be expected, reduced the carrying amount to the recoverable amount, and recorded the decrease as an impairment loss under extraordinary losses.」
Because the comprehensive reuse business fell short of plan, the company recorded an impairment loss of ¥190.384 million for asset groups at 16 locations. - FY2024-Q2MaterialisedAnnual report
「The asset group related to the comprehensive reuse business referred to above had been performing below the originally prepared business plan. Following a review of the future business plan, the company determined that recovery of the investment could no longer be expected, reduced the carrying amount to the recoverable amount, and recorded the decrease as an impairment loss under extraordinary losses.」
Because the comprehensive reuse business fell short of its original plan and recovery of the investment could no longer be expected, the company recorded an impairment loss of ¥190.384 million. The risk of acquisitions and new businesses failing to achieve results has materialized as an impairment loss. - FY2023MitigatedAnnual report
「For the consolidated fiscal year, the company confirmed that there was no significant divergence between the business plan prepared when it initially acquired the business and its actual results for the fiscal year, and that no substantial revisions were necessary to the future projections in the original business plan, and therefore determined that there were no indications of impairment.」
For the acquired business and goodwill, the company continues to determine that there is no significant divergence from the original plan and no indication of impairment. The goodwill balance decreased from ¥171.685 million to ¥97.309 million. - FY2022MitigatedAnnual report
「For the consolidated fiscal year, the company confirmed that there was no significant divergence between the business plan prepared when it initially acquired the business and its actual results for the fiscal year, and that no major revisions were necessary to the future projections in the original business plan, and therefore determined that there were no indications of impairment.」
The company determined that there was no significant divergence from the original plan for the acquired business and that there were no indications of impairment in the fiscal year. The goodwill balance was ¥171.685 million, so the risk remains. - FY2021MitigatedAnnual report
「For the consolidated fiscal year, the company confirmed that there was no significant divergence between the business plan prepared when it initially acquired the business and its actual results for the fiscal year, and that no major revisions were necessary to the future projections in the original business plan, and therefore determined that there were no indications of impairment.」
For the acquired business and goodwill, the company determined that there was no significant divergence between the acquisition plan and actual results and that there were no indications of impairment in the fiscal year. However, the goodwill balance was ¥211.686 million, so the risk remains. - FY2020First statedAnnual report
「The Group recognizes that challenging new businesses, forming business alliances with other companies and acquiring businesses are essential to securing future growth and profitability. However, if the Group fails to achieve the expected results and incurs impairment losses on goodwill, losses on the sale of businesses associated with business reorganizations, losses on business liquidations or other related expenses, this may affect the Group's operating results and financial position. The carrying amount of goodwill at the end of the consolidated fiscal year was ¥280.910 million.」
The company newly identified impairment losses on goodwill and other items as risks if new businesses, alliances and acquisitions fail to achieve the expected results, and disclosed period-end goodwill of ¥280.910 million.