Risk of Impairment of Fixed Assets and Goodwill from Deteriorating Business Conditions
First written in FY2020. 4 of 5 entries say "Materialised", first in FY2020. Latest entry: FY2025.
The Japan Wool Textile 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 2020: 51 of 96 companies on the "Worse" side.
67 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Impairment loss ¥30 million」
Regarding the impairment risk associated with deterioration in the business environment and other factors, an impairment loss of ¥30 million was recorded during the fiscal year. However, the ¥345 million goodwill impairment loss recorded in the previous fiscal year did not recur during the current fiscal year. - FY2025-H1MaterialisedAnnual report
「Impairment loss ¥15 million」
An impairment loss of ¥15 million was recorded for the current interim consolidated accounting period, showing that the impairment risk associated with deterioration in the business environment and other factors continued to materialize. - FY2023MaterialisedAnnual report
「This relates to a consolidated subsidiary engaged in selling household appliances for e-commerce in the lifestyle distribution business. Because it has been unable to generate earnings in line with the plan, the estimated amount that is not expected to be recovered during the goodwill amortization period has been recorded as a goodwill impairment loss. Recoverable value is measured based on value in use, using a discount rate of 4%.」
The consolidated subsidiary selling household appliances for e-commerce was unable to generate earnings in line with the plan, and a goodwill impairment loss of ¥383 million was recorded. - FY2021RestatedAnnual report
「If the profitability of the business declines due to deterioration in the business environment or intensifying competition in each market, the group may record impairment losses on its tangible fixed assets, goodwill and other assets, which could have a material impact on the group’s operating results and financial position.」
The company has reaffirmed its response of making investments after taking into account the risk of impairment of fixed assets and goodwill due to deterioration in the business environment and intensifying competition, as well as investment efficiency and the investment recovery period. - FY2020MaterialisedAnnual report
「If the profitability of the business declines due to deterioration in the business environment or intensifying competition in each market, the group may record impairment losses on its tangible fixed assets, goodwill and other assets, which could have a material impact on the group’s operating results and financial position.」
The company disclosed this risk as a separate item for the first time and recorded impairment losses of ¥822 million on operating assets and ¥189 million on the goodwill of 株式会社エミー during the fiscal year.