Bad Debt Risk Arising from Customer Insolvency
First written in FY2017. 13 of 23 entries say "Restated". Latest entry: FY2026.
Nippon Felt moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2019: 1 of 8 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Our group recognizes provisions for doubtful accounts based on historical bad-debt ratios and works to monitor the circumstances of its business partners. However, if a material business partner encounters an issue affecting business continuity, this may affect our group's operating results.」
The disclosure continues to identify risks related to customers' creditworthiness and ability to pay, together with the responses of recognizing provisions based on historical bad-debt ratios and monitoring business partners' circumstances. No bad-debt expense was recognized during the period. - FY2026-H1MaterialisedAnnual report
「Provision for bad debt - 2,298」
Bad-debt expense of ¥2.298 million was recognized for the interim period. Although the disclosure does not state that this was caused by deterioration in customers' financial condition or customer default, an expense related to the possibility of additional provisions was incurred. - FY2025MaterialisedAnnual report
「Selling, general and administrative expenses increased, mainly because a provision for bad debt was recognized against receivables from a business partner that had decided to commence civil rehabilitation proceedings.」
The business partner decided to commence civil rehabilitation proceedings, and a provision for bad debt of ¥119.533 million was recognized against the related receivable. The risk of declining customer payment capacity has materialized as an actual expense. - FY2023-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
The disclosure states that there have been no material changes to existing business and other risks, including bad-debt risk due to customer default. - FY2023-Q2MaterialisedAnnual report
「Provision for bad debt 1,551 4,910」
Bad-debt expense of ¥4.910 million was recognized in the cumulative second-quarter period. Although the disclosure does not state that this was caused by deterioration in customers' financial condition or customer default, an expense related to the possibility of additional provisions was incurred. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes to existing business and other risks, including bad-debt risk due to customer default. - FY2022-Q3MaterialisedAnnual report
「Provision for bad debt 8,221 2,659」
Bad-debt expense of ¥2.659 million was recognized in the cumulative third-quarter period, and expenses related to the possibility of additional provisions continued to be incurred. The disclosure does not state that this was caused by deterioration in customers' financial condition. - FY2022-Q2MaterialisedAnnual report
「Provision for bad debt 475 1,551」
Bad-debt expense of ¥1.551 million was recognized in the cumulative second-quarter period, and an expense related to the possibility of additional provisions was incurred. The disclosure does not state that this was caused by deterioration in customers' financial condition. - FY2022-Q1MaterialisedAnnual report
「Provision for bad debt - 1,194」
Bad-debt expense of ¥1.194 million was recognized in the cumulative first-quarter period, and an expense related to the possibility of additional provisions was incurred. - FY2021-Q3MaterialisedAnnual report
「Provision for bad debt - 8,221」
Bad-debt expense of ¥8.221 million was recognized in the cumulative third-quarter period, and an expense related to the possibility of additional provisions due to deterioration in customers' financial condition and other factors was incurred. - FY2021-Q2MaterialisedAnnual report
「Provision for bad debt - 475」
Bad-debt expense of ¥475,000 was recognized in the cumulative second-quarter period. Although the disclosure does not state that this was caused by deterioration in customers' financial condition, an expense related to the possibility of additional provisions was incurred. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
It states that no new business or other risks have arisen and that there have been no material changes. - FY2020RestatedAnnual report
「If a customer's financial condition deteriorates and its ability to pay declines, additional provisions may be required.」
The disclosure continues to identify the possibility of additional provisions for doubtful accounts if customers' financial condition and ability to pay deteriorate. - FY2020-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2020-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2019-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2019-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2018RestatedAnnual report
「If a customer's financial condition deteriorates and its ability to pay declines, additional provisions may be required.」
The disclosure continues to identify the possibility of additional provisions if customers' financial condition and ability to pay deteriorate. - FY2018-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2018-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
It explicitly states that there have been no material changes in existing business and other risks. - FY2018-Q1MaterialisedAnnual report
「Provision for bad debt - 3,895」
Bad-debt expense of ¥3.895 million was recognized in the first quarter. Although the disclosure does not state that this was caused by deterioration in customers' financial condition, an accounting expense related to the possibility of additional provisions was incurred. - FY2017First statedAnnual report
「If a customer's financial condition deteriorates and its ability to pay declines, additional provisions may be required.」
The possibility that additional provisions for doubtful accounts may be required if customers' financial condition and ability to pay deteriorate is identified as an accounting-estimate risk.