Investment Recovery and Impairment Risk for New Business Software
First written in FY2022. 5 of 7 entries say "Materialised", first in FY2023. Latest entry: FY2026.
ODK Solutions Company moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
33 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Amounts recognized during the current consolidated fiscal year Software related to new businesses ¥37.752 million Impairment loss ¥23.180 million」
Impairment losses of ¥23.180 million were recognized for software related to new businesses, and the investment recovery risk materialized again in the current fiscal year. - FY2024MaterialisedAnnual report
「The recoverable amount of the asset was measured based on value in use. However, because the earnings initially anticipated were no longer expected and future cash flows were expected to be negative during the estimated period, the recoverable amount was assessed at zero, and the decrease of ¥193.594 million was recognized as an impairment loss under extraordinary losses.」
Because the earnings initially anticipated for software related to new businesses were no longer expected, impairment losses of ¥193.594 million were recognized. The investment recovery risk materialized again following the previous fiscal year. - FY2023MaterialisedAnnual report
「Because the originally anticipated revenue could not be expected and the future cash flows were expected to be negative over the estimation period, the recoverable amount was assessed as zero, and the resulting reduction of ¥50.123 million was recognised as an impairment loss and recorded under extraordinary losses.」
The investment recovery risk for software for new businesses materialized again in the current fiscal year, and impairment losses of ¥50.123 million were recognized for systems related to customer success. - FY2023-Q3WorsenedAnnual report
「These new initiatives by our group, including the customer success business, are expected to take longer to generate revenue than initially anticipated. Nevertheless, we will continue to promote them actively, aiming to lay the foundations for the data business and strengthen business capabilities by connecting them with existing businesses.」
The Company expects initiatives including the customer success business to take longer than initially anticipated to generate earnings, indicating heightened uncertainty regarding recovery of investments in software for new businesses and other assets. - FY2022First statedAnnual report
「If the Company’s business profitability declines or another factor causes a significant decrease in future cash flows, the invested software may not be put to use in the business, or recovery of part of the investment may not be expected.」
The possibility that investment in software related to new businesses may not be recovered was separately disclosed for the first time as a significant accounting estimate, and impairment losses of ¥195.738 million were recognized during the fiscal year for systems related to customer success and other purposes.