Risk of Valuation Losses on Real Estate for Sale
First written in FY2017. 8 of 17 entries say "Worsened", first in FY2023. Latest entry: FY2026.
Forlife moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 39 companies on the "Worse" side.
37 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The ending inventory balance is stated after write-downs due to reduced profitability, and the following inventory valuation loss is included in cost of sales: ¥2.6 million」
Although an inventory valuation loss was recognized, it decreased from ¥13.26 million in the previous fiscal year to ¥2.6 million. The impact of valuation loss risk declined year on year. - FY2026-H1WorsenedAnnual report
「Current assets at the end of the interim accounting period amounted to ¥10,098.713 million, an increase of ¥819.795 million from the end of the previous fiscal year. This was mainly due to an increase of ¥1,274.873 million in inventories, despite a decrease of ¥520.685 million in cash and deposits.」
Inventories increased by ¥1,274.873 million, increasing exposure to properties held for sale and properties under development for sale that could result in valuation losses if sales stagnate. No valuation loss itself was reported in this filing. - FY2025WorsenedAnnual report
「The ending inventory balance is stated after write-downs due to reduced profitability, and the following inventory valuation loss is included in cost of sales: ¥13.26 million」
The inventory valuation loss increased from ¥7.94 million in the previous fiscal year to ¥13.26 million, expanding the impact of valuation loss risk for properties held for sale. - FY2025-H1WorsenedAnnual report
「Current assets at the end of the interim accounting period amounted to ¥9,059.538 million, an increase of ¥2,056.938 million from the end of the previous fiscal year. This was mainly due to an increase of ¥1,685.767 million in inventories and an increase of ¥182.448 million in contract assets.」
Inventories increased by ¥1,685.767 million, increasing exposure to properties held for sale and properties under development for sale that could result in valuation losses if sales stagnate. No valuation loss itself was reported. - FY2024-Q3RestatedAnnual report
「Completed inventory of newly built detached homes in the Tokyo metropolitan area also remained above the previous year's level.」
Completed inventory continues to increase, and the risk of properties held for sale remaining in inventory and potentially resulting in valuation losses if sales stagnate continues to be indicated. - FY2024-Q2WorsenedAnnual report
「Completed inventory increased.」
The upward trend in completed inventory continued, and properties held for sale on the balance sheet increased from ¥602.963 million at the end of the previous fiscal year to ¥1,144.608 million. Exposure to valuation loss risk if sales stagnate has increased. - FY2024-Q1WorsenedAnnual report
「In the housing industry to which the Company belongs, the number of starts of owner-occupied homes and spec-built detached homes remained below the previous year's level, while completed inventory tended to increase.」
The upward trend in completed inventory indicates increased exposure to the risk of properties held for sale remaining in inventory and potentially resulting in valuation losses if sales stagnate. - FY2023WorsenedAnnual report
「The ending inventory balance is stated after write-downs due to reduced profitability, and the following inventory valuation loss is included in cost of sales: ¥27.46 million」
The inventory valuation loss increased from ¥16.7 million in the previous fiscal year to ¥27.46 million, expanding the impact of valuation loss risk for properties held for sale. - FY2022MaterialisedAnnual report
「The ending inventory balance is stated after write-downs due to reduced profitability, and the following inventory valuation loss is included in cost of sales: ¥16.7 million」
An inventory valuation loss of ¥16.7 million due to reduced profitability of properties held for sale and other inventory was recognized during the fiscal year, and the valuation loss risk materialized. - FY2021RestatedAnnual report
「Going forward, if sales do not progress as initially planned due to deterioration in economic conditions or the real estate market, among other factors, properties held for sale may remain in inventory. If the holding period becomes prolonged, the net realizable value at the end of the fiscal year may fall below the carrying value or acquisition cost, and the Company expects that it may recognize impairment losses on properties held for sale.」
The risk of valuation losses due to properties held for sale remaining in inventory and a decline in net realizable value continues. No valuation losses on properties held for sale or properties under development for sale were recognized during the fiscal year. - FY2020RestatedAnnual report
「Going forward, if sales do not progress as initially planned due to deterioration in economic conditions or the real estate market, among other factors, properties held for sale may remain in inventory. If the holding period becomes prolonged, the net realizable value at the end of the fiscal year may fall below the carrying value or acquisition cost, and the Company expects that it may recognize impairment losses on properties held for sale.」
The risk of valuation losses due to properties held for sale remaining in inventory and a decline in net realizable value continues to be documented. - FY2019RestatedAnnual report
「Going forward, if sales do not progress as initially planned due to deterioration in economic conditions or the real estate market, among other factors, properties held for sale may remain in inventory. If the holding period becomes prolonged, the net realizable value at the end of the fiscal year may fall below the carrying value or acquisition cost, and the Company expects that it may recognize impairment losses on properties held for sale.」
The risk of valuation losses due to properties held for sale remaining in inventory and a decline in net realizable value continues to be documented. - FY2018RestatedAnnual report
「Going forward, if sales do not progress as initially planned due to deterioration in economic conditions or the real estate market, among other factors, properties held for sale may remain in inventory. If the holding period becomes prolonged, the net realizable value at the end of the fiscal year may fall below the carrying value or acquisition cost, and the Company expects that it may recognize impairment losses on properties held for sale.」
The risk of valuation losses due to properties held for sale remaining in inventory and a decline in net realizable value continues to be documented. - FY2017First statedAnnual report
「If sales do not progress as initially planned due to deterioration in economic conditions or the real estate market, among other factors, properties held for sale may remain in inventory. If the holding period becomes prolonged, the net realizable value at the end of the fiscal year may fall below the carrying value or acquisition cost, and the Company expects that it may recognize impairment losses on properties held for sale.」
The accounting treatment of write-downs based on reduced profitability and the potential for valuation losses when inventory remains unsold have been explained.