Risks of Goodwill Impairment and Valuation Losses on Shares in the Smart Meeting Room Business
First written in FY2020. 2 of 5 entries say "Restated". Latest entry: FY2024.
Azoom moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「The Group reports goodwill of ¥39.354 million on its consolidated balance sheet. The goodwill relates to the web reservation system Smart Space Reservations, acquired through a business acquisition in September 2019, which provides operational support for rental spaces such as meeting rooms, gyms and studios. If the expected results from the future business plan are not achieved because of sluggish growth in the number of rooms newly implementing the system, weak orders for related customization projects and an increase in cancellations, and the Group determines that an impairment loss must be recognized, this could affect the Group's performance.」
The goodwill balance was ¥39.354 million. In addition to the existing shortfall against the plan for the number of implemented rooms, weak orders for customization projects and an increase in cancellations became specific risk factors. No impairment loss was recognized. - FY2023RestatedAnnual report
「Because the actual number of rooms newly implementing the system fell below the number anticipated at the time of the business acquisition, actual results diverged significantly downward from the business plan prepared at the time of the acquisition, and indications of impairment were identified in the related asset group. The Group assessed whether an impairment loss needed to be recognized and determined that no impairment loss was necessary because total undiscounted future cash flows exceeded the carrying amount of the assets.」
The Smart Space Reservations Business continues to fall short of its plan for the number of implemented rooms, and indications of impairment remain present, but no impairment loss was recognized in the current fiscal year. The goodwill balance was ¥47.225 million. - FY2022RestatedAnnual report
「Because the actual number of rooms newly implementing the system fell below the number anticipated at the time of the business acquisition, actual results diverged significantly downward from the business plan prepared at the time of the acquisition, and indications of impairment were identified in the related asset group. The Group assessed whether an impairment loss needed to be recognized and determined that no impairment loss was necessary because total undiscounted future cash flows exceeded the carrying amount of the assets.」
The Smart Space Reservations Business continues to fall short of its plan for the number of newly implemented rooms, and indications of impairment remain present. However, no impairment loss was recognized because undiscounted future cash flows exceeded the carrying amount. - FY2021MaterialisedAnnual report
「Because the actual number of rooms newly implementing the system fell below the number anticipated at the time of the business acquisition, actual results diverged significantly downward from the business plan prepared at the time of the acquisition, and indications of impairment were identified in the related asset group.」
The number of new rooms implementing the Smart Space Reservations Business fell below plan, and indications of impairment were identified in the asset group including goodwill. However, no impairment loss was recognized because undiscounted future cash flows exceeded the carrying amount. - FY2020First statedAnnual report
「The Group reports goodwill of ¥70.837 million on its consolidated balance sheet at the end of the consolidated fiscal year. The goodwill relates to the web reservation system Smart Meeting Room, acquired through a business acquisition in September 2019, which provides operational support for rental meeting rooms. If the expected results from the business acquisition are not achieved because of sluggish growth in new users or an increase in cancellations, and the Group determines that an impairment loss must be recognized, this could affect the Group's performance.」
For the ¥70.837 million of goodwill related to Smart Meeting Room, the Company disclosed for the first time, in specific terms, the impairment risk arising from sluggish user growth and an increase in cancellations. It also described the risk of impairment losses on shares of subsidiaries.