Risk of valuation losses on properties for sale and impairment of fixed assets
First written in FY2019. 3 of 10 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Azplanning moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 11 of 21 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Because profit or loss from operating activities for business-use assets had remained negative, the Company reduced their carrying amount to the recoverable amount and recorded the decrease as an impairment loss of ¥992 thousand.」
The impairment loss on fixed assets increased from ¥122 thousand in the previous fiscal year to ¥992 thousand. No inventory valuation loss on property held for sale was recorded, but the risk of impairment of fixed assets materialized again during the current fiscal year. - FY2025MitigatedAnnual report
「Amounts recorded in the consolidated financial statements for the current consolidated fiscal year: property held for sale 7,930,579; property under development for sale –; cost of sales (inventory valuation loss) –」
No valuation loss on property held for sale was recorded, and the impairment loss on fixed assets was limited to ¥122 thousand. Although this represents a numerical improvement from the large impairment loss in the previous fiscal year, the valuation-loss and impairment risks themselves continue. - FY2024MitigatedAnnual report
「For property held for sale and property under development for sale, if the net realizable value falls below acquisition cost, the net realizable value is used as the amount reported on the consolidated balance sheet.」
Neither an inventory valuation loss nor an impairment loss on fixed assets was recorded during the current fiscal year, representing a numerical improvement from the large impairment loss incurred in the previous fiscal year. However, the valuation-loss and impairment risks themselves continue to be disclosed. - FY2023MitigatedAnnual report
「There were no applicable matters for the fiscal year (from 1 March 2022 to 28 February 2023).」
No segment impairment loss was recorded during the current fiscal year for fixed assets, for which an impairment loss of ¥742.118 million was recorded in the previous fiscal year. However, the risks of valuation losses on property held for sale and impairment losses on fixed assets continue to be disclosed. - FY2022WorsenedAnnual report
「For business-use assets, the Company reduced the carrying amount of the hotel-equipment group to its recoverable amount because operations had been suspended and the method of use had changed. For the other groups, it reduced the carrying amount to the recoverable amount because profit or loss from operating activities had remained negative, and recorded the decreases as extraordinary losses in the income statement for the fiscal year. The impairment loss was ¥742.118 million.」
The impairment loss on fixed assets increased significantly from ¥35.376 million in the previous fiscal year to ¥742.118 million. At the Tohoku hotels, suspension of operations and changes in the method of use triggered the impairment. - FY2021WorsenedAnnual report
「Because profit or loss from operating activities for business-use assets had remained negative, the Company reduced their carrying amount to the recoverable amount and recorded the decrease as an impairment loss of ¥35.376 million.」
The impairment loss on fixed assets increased from ¥6.055 million in the previous fiscal year to ¥35.376 million. The breakdown includes ¥24.822 million for accommodation facilities and multiple assets including shared offices. - FY2021-Q3Withdrawal from vacation-rental propertiesAnnual report
「In the Real Estate Rental Business segment, the Company reduced the carrying amount of accommodation facilities from which it had exited to their recoverable amount and recorded the decrease as an impairment loss. The impairment loss recorded during the cumulative third quarter was ¥24.822 million.」
The Company indicates that it exited the accommodation facilities that had been scheduled for exit in the previous quarter and recorded an impairment loss of ¥24.822 million. - FY2021-Q2MaterialisedAnnual report
「In the real estate leasing business segment, the carrying amount of private lodging facilities scheduled for withdrawal was reduced to the recoverable amount, and the reduction was recognized as an impairment loss. The impairment loss recognized during the six-month cumulative period of the current fiscal year was ¥24,822 thousand.」
The Company reduced the carrying amount of accommodation facilities scheduled for exit to their recoverable amount and actually recorded a fixed-asset impairment loss of ¥24.822 million. - FY2020MaterialisedAnnual report
「Because profit or loss from operating activities for business-use assets had remained negative, the Company reduced their carrying amount to the recoverable amount and recorded the decrease as an impairment loss of ¥6.055 million.」
The Company actually recorded an impairment loss of ¥6.055 million on business-use assets in Chiyoda-ku, Tokyo, and Saitama City, Saitama Prefecture. - FY2019First statedAnnual report
「If the value of property held for sale developed by the Company's real estate sales business falls below its carrying amount due to deterioration in economic conditions, real estate market conditions or other factors, a loss may arise from writing down the carrying amount of inventories, potentially affecting the Company's operating results and other aspects of its business. In addition, if the total undiscounted future cash flows generated by assets used in the real estate rental business, which is centered on business hotels in the Tohoku region, falls below the carrying amount of the properties held, an impairment loss may arise and affect the Company's operating results and other aspects of its business.」
The Company explicitly identifies as risks to operating results inventory write-downs for property held for sale due to deteriorating market conditions and impairment losses on fixed assets such as hotels. During the current period, it recorded an inventory valuation loss of ¥12.755 million and an impairment loss of ¥8.293 million.