Difficulty Recovering Investment in Acquired Media Businesses and Goodwill Impairment Risk
First written in FY2020. 4 of 6 entries say "Materialised", first in FY2022. Latest entry: FY2025.
Digital Plus 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 2023: 35 of 97 companies on the "Worse" side.
54 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「In connection with the transfer of the digital marketing support business, goodwill related to “Digital Marketing” was classified as an asset held for sale, and the carrying amount was reduced to fair value less costs of disposal. As a result, an impairment loss of ¥17.455 million was recognized.」
Regarding the risk of recovering investments in acquired businesses and media, an impairment loss of ¥17.455 million on goodwill related to digital marketing was recorded. - FY2025-H1MaterialisedAnnual report
「Because the fair value less costs of disposal of the goodwill was below its carrying amount, it was measured at fair value less costs of disposal. The resulting impairment loss of ¥17.455 million was recorded under “Other expenses” in the condensed interim consolidated income statement.」
In connection with the transfer of the digital marketing support business, an impairment loss of ¥17.455 million on goodwill was actually recorded. - FY2024MaterialisedAnnual report
「Due to the decline in the profitability of the web media service “すーちゃんモバイル比較,” the recoverable amount of the intangible assets in the cash-generating unit related to the service within the Digital Marketing business segment was measured, and an impairment loss of ¥13.922 million was recognized.」
Regarding the difficulty of recovering investments in acquired media and other businesses and the related impairment risk, an impairment loss of ¥13.922 million on intangible assets related to “すーちゃんモバイル比較” was recorded in the current fiscal year as well. - FY2022MaterialisedAnnual report
「As it was determined that recovering the investment in the goodwill had become difficult due to changes in the business environment, the recoverable amount of the asset was measured as either fair value less costs of disposal or value in use. The carrying amount was reduced to the recoverable amount—the transfer price in the case of fair value less costs of disposal, or ¥0 in the case of value in use—and the reduction was recorded as an impairment loss.」
The risk of difficulty recovering the investment in acquired media and goodwill impairment materialized, and an impairment loss of ¥144.216 million on goodwill was recorded. - FY2021MitigatedAnnual report
「In identifying indicators of goodwill impairment, we compared the business plans reasonably prepared at the time of the business acquisitions with past results and considered the forecast of operating profit and loss from the current consolidated fiscal year onward. As we believe that no impairment of the excess earning power has occurred, we determined that there were no indicators of goodwill impairment.」
For goodwill of ¥320.645 million related to the acquired media, the company determined that there were no impairment indicators for the fiscal year based on the business plans, past results, and operating profit and loss forecasts. - FY2020First statedAnnual report
「The group also acquires internet media businesses. If the acquired sites are affected by these factors and recovering the expected investment becomes difficult as a result, the group’s operating results and financial position may be affected by impairment of goodwill and other assets and by impacts on cash flow.」
For the first time, the company expressly disclosed the risks associated with acquiring and holding new media, including difficulty recovering the investment, goodwill impairment, and impacts on cash flow.