Impairment risk from declining asset values and deteriorating profitability
First written in FY2020. 4 of 7 entries say "Materialised", first in FY2021. Latest entry: FY2026.
Kitabo moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 72 of 121 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「During the consolidated fiscal year, the spinning business was judged to show indications of impairment because it recorded an operating loss after allocation of corporate expenses as a result of declining production volumes and insufficient progress in reducing fixed costs.」
Although no new impairment loss was recorded during the fiscal year, the Company identified indications of impairment in the spinning business due to declining production volumes and failure to reduce fixed costs, and indicated the possibility of impairment if future real estate appraisal values decline. - FY2024WorsenedAnnual report
「During the consolidated fiscal year, the Company recorded total impairment losses of ¥270.863 million on its Matsuto and Kakegawa plants in the recycling business and on 金井産業株式会社 because operating income and loss generated by operating activities remained negative.」
The impairment risk from deteriorating profitability increased from ¥126.365 million in the previous fiscal year to ¥270.863 million and actually materialized at multiple sites in the recycling business. - FY2023MaterialisedAnnual report
「At our Matsuto Plant in Hakusan, Ishikawa Prefecture, the Healthcare Business recognized an impairment loss of ¥29.350 million by reducing the carrying amount of property, plant and equipment to its recoverable amount, as operating losses had continued. At our Kakegawa Plant in Kakegawa, Shizuoka Prefecture, the Recycling Business recognized an impairment loss of ¥97.015 million, also due to continued operating losses.」
The impairment risk associated with deteriorating business profitability actually materialized as a total impairment loss of ¥126.365 million in the healthcare and recycling businesses. - FY2023-Q2MaterialisedAnnual report
「This was due to a ¥27.715 million decrease in investment securities.」
Investment securities decreased by ¥27.715 million due to sales and changes in fair value, and the effects associated with declining asset values and deteriorating profitability continued to emerge. - FY2022MaterialisedAnnual report
「As the mask manufacturing equipment related to the Healthcare Business had been idle for a certain period and there was no prospect of resuming operations, we determined that the originally anticipated earnings could not be generated and that the recoverable amount was zero. Accordingly, the full carrying amount of ¥7.389 million was recognized as an impairment loss under extraordinary losses.」
The impairment risk associated with deteriorating business profitability and idle facilities actually materialized as a ¥7.389 million impairment loss on mask-manufacturing equipment. - FY2021MaterialisedAnnual report
「Because the earnings originally expected when the acquisition agreement was concluded for the goodwill arising from the acquisition of its consolidated subsidiary 株式会社中部薬品工業 could no longer be expected, the Company reduced the carrying amount of the asset to zero and recorded the resulting ¥27.557 million reduction as an impairment loss under extraordinary losses.」
Because the expected earnings from the goodwill associated with the acquisition of the subsidiary could no longer be expected, the Company actually recorded the full ¥27.557 million as an impairment loss. - FY2020First statedAnnual report
「If the market prices of assets held by the Company decline significantly or the profitability of its businesses deteriorates, impairment accounting may result in impairment losses on fixed assets, which could affect the Company's performance.」
The Company disclosed for the first time impairment risk from declining asset prices and deteriorating business profitability as a standalone risk item. It recorded an impairment loss of ¥19.917 million during the fiscal year.