Goodwill Impairment Risk
First written in FY2019. 1 of 3 entries say "Dropped", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2026: 17 of 32 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Goodwill impairment risk reappearsAnnual report
「Changes in the business environment of the industry in which the acquired company operates may affect the feasibility of its business plans. If deterioration in performance or other factors requires the assumptions to be revised, this may have a material impact on the amount of goodwill through the recognition of an impairment loss.」
Following the classification of メグリ株式会社 as a consolidated subsidiary, goodwill of ¥1.805475 billion was recognized, and the risk of impairment due to failure to achieve business plans or the expected number of future contracts was again stated explicitly. - FY2022DroppedAnnual report
「Goodwill 60,317 -」
The consolidated balance sheet at the end of the fiscal year shows a zero goodwill balance, and this filing does not separately identify goodwill impairment risk under business and other risks. - FY2019First statedAnnual report
「The group amortizes goodwill on a straight-line basis over the period in which it expects the goodwill to generate benefits. It assesses the asset's recoverability based on the subsidiary's performance and business plans. If the initially expected earnings can no longer be expected in the future and the need for impairment is identified, the group may record an impairment loss on goodwill in the relevant consolidated fiscal year.」
Against the background of goodwill recognized in the acquisition of AtoJ, the group initially disclosed the risk of goodwill impairment if the subsidiary's performance or business plan falls short of expectations.