Impairment of Software Assets
First written in FY2016. 5 of 11 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Sockets 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 2024: 19 of 45 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Company may write off part or all of these assets following changes to contracts with business partners or other events. In that event, an expense would be recognized at once, which could affect the Company's operating results.」
The risk of write-offs and expenses arising from changes to contracts and other events relating to software for the Company's own services continues. No new impairment loss was recognized during the fiscal year. - FY2025MaterialisedAnnual report
「As operating income for the Company as a whole was negative for 2 consecutive periods during the fiscal year and indications of impairment were identified in the above operating assets, the Company carefully tested their recoverability. Because the estimated total future cash flows fell below the carrying amount of the asset group, the carrying amount was reduced to the recoverable amount, and the decrease was recognized as an impairment loss under extraordinary loss.」
The Company recognized impairment losses of ¥9,816 thousand on software, ¥181 thousand on tools, fixtures and equipment, and ¥7,000 thousand on lease and guarantee deposits, for a total of ¥16,997 thousand, an increase from ¥723 thousand in the previous fiscal year. - FY2024MaterialisedAnnual report
「As operating income for the Company as a whole was negative for 2 consecutive periods during the fiscal year and indications of impairment were identified in the above operating assets, the Company carefully tested their recoverability. Because the estimated total future cash flows fell below the carrying amount of the asset group, the carrying amount was reduced to the recoverable amount, and the decrease was recognized as an impairment loss under extraordinary loss.」
Following indications of impairment associated with 2 consecutive periods of operating losses, the Company recognized impairment losses of ¥557 thousand on software and ¥166 thousand on tools, fixtures and equipment, for a total of ¥723 thousand. - FY2022MaterialisedAnnual report
「As a result of recognizing a ¥22,959 thousand impairment loss on fixed assets as an extraordinary loss in accordance with the accounting standards for impairment of fixed assets, among other factors, net loss for the period was ¥150,237 thousand.」
The Company actually recognized a ¥22,959 thousand impairment loss on fixed assets, including ¥12,608 thousand on software. The recoverable amount of assets for which no future cash flows were expected was set at zero. - FY2022-Q3MaterialisedAnnual report
「As a result of recognizing a ¥25,803 thousand gain on the sale of investment securities and a ¥41,828 thousand loss on the disposal of fixed assets relating to software under development due to changes in the development plan, quarterly net loss was ¥106,999 thousand, compared with a quarterly net loss of ¥75,340 thousand in the same period of the previous year.」
Following a change in the development plan, the Company recognized a ¥41,828 thousand loss on the disposal of fixed assets relating to software under development, demonstrating that the software asset disposal risk has materialized. - FY2020RestatedAnnual report
「However, if the value in use of the relevant development and research and development declines because they do not meet market needs, or if the software ceases to function because of a serious bug or other defect, the Company may write off these assets.」
The risk of write-offs and expenses arising from software assets that no longer meet market needs or are affected by serious bugs continues. - FY2018RestatedAnnual report
「However, if the value in use of the relevant development and research and development declines because they do not meet market needs, or if the software ceases to function because of a serious bug or other defect, the Company may write off these assets. In that event, a substantial expense would be recognized at once, which could affect the Company's operating results.」
The risk of write-offs and expenses arising from a decline in the value in use of software development and research and development and from serious bugs continues to be disclosed. - FY2017-Q3RestatedAnnual report
「Extraordinary loss consisted of a ¥1,765 thousand impairment loss.」
The Company continues to report a ¥1,765 thousand impairment loss on software and other assets. No new additional loss is indicated. - FY2017-Q2RestatedAnnual report
「Extraordinary loss consisted of a ¥1,765 thousand impairment loss.」
The Company continues to report a ¥1,765 thousand impairment loss on software and other assets, but does not indicate any additional loss relative to the amount reported in the previous quarterly report. - FY2017-Q1MaterialisedAnnual report
「Extraordinary loss consisted of a ¥1,765 thousand impairment loss.」
Regarding the risk of impairment of software assets, a ¥1,765 thousand impairment loss was also recognized during the cumulative first-quarter period. - FY2016First statedAnnual report
「However, if the value in use of the relevant development and research and development declines because they do not meet market needs, or if the software ceases to function because of a serious bug or other defect, the Company may recognize an impairment loss on these assets. In that event, a substantial expense would be recognized at once, which could affect the Company's operating results.」
The Company recognized a ¥2,221 thousand impairment loss on software during the fiscal year, demonstrating that the event described as a risk has occurred.