Country Risk Associated with Cross-Border Transactions
First written in FY2016. 4 of 6 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2025.
Merf moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The Company recorded a loss on investments accounted for using the equity method.」
The Company recorded a ¥24.254 million equity-method investment loss related to an equity-method affiliate located in Thailand, and the impact of risks associated with overseas operations continued to affect profit and loss. - FY2025-H1MaterialisedAnnual report
「Loss on investments accounted for using the equity method ※2 21,449」
A ¥21,449 thousand loss on the equity-method investment in THAI KUROTANI CO., LTD., located in Thailand, was recognized, and the impact of risks related to overseas operations continues to be reflected in earnings. - FY2024MaterialisedAnnual report
「Following a tax audit by Thailand's tax authorities concerning value-added tax and other items for the tax years ended December 2019, December 2020 and December 2021 at THAI KUROTANI CO., LTD., an equity-method affiliate located in Thailand, the company received a tax reassessment notice dated 28 March 2024 assessing THB 126,831 thousand. Of the ¥281,350 thousand loss on investments accounted for using the equity method recognized in connection with this matter, ¥259,155 thousand was recorded as the additional tax and related amounts.」
Following the tax reassessment notice issued by Thailand's tax authorities to the Thai equity-method affiliate, the company recognized a ¥281,350 thousand loss on investments accounted for using the equity method, including ¥259,155 thousand in additional tax and related amounts. Country risk has had a specific impact on full-year earnings. - FY2024-Q2MaterialisedAnnual report
「THAI KUROTANI CO., LTD., an equity-method affiliate located in Thailand with a December year-end, received a tax reassessment notice dated 28 March 2024 from Thailand's tax authorities, the Revenue Department, concerning value-added tax and other items for the tax years ended December 2019, December 2020 and December 2021. The notice assessed THB 126,831 thousand.」
Regarding the risk of tax and regulatory changes associated with multinational transactions, the Thai equity-method affiliate received a tax reassessment notice concerning value-added tax and other items for prior years, and the company recognized a loss on investments accounted for using the equity method. - FY2021RestatedAnnual report
「Because the Group conducts a high proportion of multinational transactions, its operating results and financial condition may be adversely affected by the economic conditions in the countries of its business partners, as well as trade and commercial regulations, taxation systems, unexpected changes in laws or regulations, and differences in their interpretation.」
Country risks associated with economic conditions, regulatory changes, tax changes and other factors in each country arising from multinational transactions are reiterated. - FY2016First statedAnnual report
「Because the Group conducts a high proportion of multinational transactions, its operating results and financial condition may be adversely affected by the economic conditions in the countries of its business partners, as well as trade and commercial regulations, taxation systems, unexpected changes in laws or regulations, and differences in their interpretation.」
Against the backdrop of its significant overseas transaction exposure, economic conditions, regulations and tax changes in each country are listed as risks.