Risk of Impairment of Goodwill and Other Assets Related to the Acquisition of DeSC Healthcare
First written in FY2022. 2 of 12 entries say "Mitigated", first in 2026-05-12. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Because DeSC Healthcare's operating results remained negative, impairment indicators were identified for the asset group to which the goodwill relates. However, because the undiscounted future cash flows based on DeSC Healthcare's business plan exceed the carrying amount of the fixed assets, including goodwill, no impairment loss has been recognized.」
Although DeSC's operating results remained negative and impairment indicators were identified, no impairment loss was recognized for the current fiscal year on the grounds that undiscounted future cash flows exceed the carrying amount. - 2026-05-12MitigatedManagement Planning
「Reduction in fixed costs, including depreciation and amortization expense, through the business structure review conducted in the previous consolidated fiscal year」
The Company explained that lower depreciation and amortization expense after the previous year's impairment loss contributed to earnings improvement and a return to profitability in the fiscal year ending March 2026. - FY2025MaterialisedAnnual report
「As a result of reviewing the future recoverability of goodwill recognized as DeSC Healthcare's excess earning power and of its fixed assets during the current consolidated fiscal year, the carrying amounts were reduced to their recoverable amounts. The reduction of ¥2,440,793 thousand was recognized as an impairment loss under extraordinary losses.」
As DeSC's performance fell below the business plan at the time of acquisition, an actual impairment loss totaling ¥2,440,793 thousand was recognized for goodwill of ¥1,555,148 thousand and the company's fixed assets and other assets. - FY2025-H1Mid-year update on goodwill amortizationAnnual report
「Property, plant and equipment increased by ¥130 million from the end of the previous fiscal year to the balance at the end of the interim period, as software increased due to systems development to improve internal efficiency, while goodwill arising from the acquisition of DeSC Healthcare as a subsidiary decreased through amortization.」
The company states that goodwill associated with the consolidation of DeSC Healthcare as a subsidiary declined due to amortization. The interim consolidated statement of cash flows disclosed goodwill amortization of ¥127 million, with no impairment loss stated as having been recognized. - FY2024WorsenedAnnual report
「Because sales activities aimed at acquiring new customers for the data utilization service of DeSC Healthcare and increasing orders from existing customers were delayed, among other factors, DeSC Healthcare's operating results fell below the business plan prepared at the time of the share acquisition. Accordingly, impairment indicators were identified for the asset group to which the goodwill relates. However, because the undiscounted future cash flows based on DeSC Healthcare's business plan exceed the carrying amount of the fixed assets, including goodwill, no impairment loss has been recognized.」
DeSC's results fell below the business plan at the time of acquisition, and impairment indicators were identified for assets related to goodwill. However, because future cash flows exceed the carrying amount, no impairment loss was recognized for the current fiscal year. - FY2024-Q3Update on goodwill balance and amortization expenseAnnual report
「Operating loss amounted to ¥422 million, compared with an operating loss of ¥369 million in the same period of the previous year." Depreciation and amortization ¥282,059 thousand Goodwill amortization expense ¥192,960 thousand」
Cumulative goodwill amortization associated with the consolidation of DeSC as a subsidiary for the third quarter was disclosed as ¥192 million. No impairment loss is stated as having been recognized. - FY2024-Q2Update on goodwill balance and amortization expenseAnnual report
「Software under development increased as the company advanced system development to improve internal efficiency, while goodwill resulting from the consolidation of DeSC as a subsidiary declined due to amortization. As a result, the balance at the end of the second quarter increased ¥51 million from the end of the previous fiscal year.」
Goodwill associated with the consolidation of DeSC as a subsidiary declined due to amortization, and cumulative goodwill amortization for the second quarter amounted to ¥128 million. No impairment loss is stated as having been recognized. - FY2024-Q1Update on goodwill balance and amortization expenseAnnual report
「Goodwill amortization expense ¥64,320 thousand」
Goodwill associated with the consolidation of DeSC as a subsidiary was disclosed, with cumulative amortization for the first quarter amounting to ¥64.32 million. No impairment loss is stated as having been recognized. - FY2023-Q3Update on goodwill balance and amortization expenseAnnual report
「Property, plant and equipment and intangible assets increased ¥2,973 million from the end of the previous fiscal year, reflecting a ¥2,444 million increase in goodwill resulting from the consolidation of DeSC as a subsidiary, as well as software held by the company." Goodwill amortization expense: ¥128,640 thousand」
The carrying amount of goodwill on the balance sheet increased ¥2,444 million in connection with the consolidation of DeSC as a subsidiary, and cumulative goodwill amortization for the third quarter amounted to ¥128 million. No goodwill impairment loss is stated as having been recognized. - FY2023-Q2Details of goodwill recognizedAnnual report
「Amount of goodwill recognized ¥2,572,801 thousand As the calculation of the fair values of the assets acquired and liabilities assumed as of the acquisition date was not complete as of the approval date of the quarterly consolidated financial statements, provisional accounting treatment has been applied." Amortization method and period Straight-line amortization over 10 years」
Goodwill of ¥2,572 million was recognized in connection with the acquisition of DeSC. Because the fair values of the acquired assets and other items have not been finalized, provisional accounting treatment was applied, with straight-line amortization over 10 years. No impairment loss is stated as having been recognized. - FY2023-Q1RestatedAnnual report
「No new business or other risks arose during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to its existing business and other risks, including the impairment risk for goodwill and other assets associated with the acquisition of DeSC Healthcare. - FY2022First statedAnnual report
「This business combination is expected to generate a substantial amount of goodwill. If expected cash flows are not generated because of factors such as a divergence from future business plans, the recognition of impairment losses and other items could affect the financial position and operating results of the Group.」
In connection with the planned acquisition of DeSC Healthcare, the company has identified the impairment risk arising from substantial goodwill and failure to achieve future cash flows as a new key risk.