Risk of impairment losses from fluctuations in the fair value of securities investments and deterioration in investees’ financial condition
First written in FY2020. 3 of 8 entries say "Restated". Latest entry: FY2026.
Data Applications moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2019: 37 of 69 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The company, Data Applications Company,Limited, holds listed shares and bonds, while デジタルトランスコミュニケーションズ株式会社 holds investment trusts. Accordingly, these holdings may be subject to impairment depending on stock and bond market conditions and changes in the net asset value of investment trusts.」
The impairment risk relating to investments in securities was expanded to include investment trusts held by DTC, covering market fluctuations in shares, bonds, and investment trusts. - FY2023WorsenedAnnual report
「The Group holds listed shares and bonds. Accordingly, they may be subject to impairment depending on stock and bond market conditions, potentially affecting the Group’s financial position and operating results.」
The investments in securities subject to risk expanded from listed shares to include bonds. Investments in securities totaled ¥852.346 million, and the company disclosed the possibility of impairment due to market fluctuations. - FY2022SoftenedAnnual report
「The Group holds listed shares. Accordingly, they may be subject to impairment depending on stock market conditions, potentially affecting the Group’s financial position and operating results.」
The company narrowed the scope of its disclosure from impairment risks relating to both listed and unlisted shares to risks from changes in market conditions for listed shares during the consolidated fiscal year. - FY2022-Q3RestatedAnnual report
「There were no material changes during the third quarter of the current consolidated cumulative period in the assumptions and accounting estimates, including those concerning when the effects of COVID-19 would subside.」
The company stated that there were no material changes in the assumptions concerning when the pandemic would subside or in the accounting estimates, while continuing to indicate the possibility that changes beyond its assumptions could affect the consolidated financial statements. - FY2021-Q3WorsenedAnnual report
「The Group had assumed that the effects of the spread of COVID-19 and the resulting stagnation of economic activity would gradually recover from the third quarter onward through the end of the fiscal year. However, as the effects of COVID-19 were expected to persist, including the reissuance of a state of emergency in certain regions, the Group revised its assumption to one of gradual recovery from the third quarter of the fiscal year ending March 2022 and normalization by the end of that fiscal year, and made accounting estimates concerning the recoverability of deferred tax assets and the valuation of investments in securities without market values.」
The company changed its assumption regarding the effects of the pandemic from the previous recovery scenario to gradual recovery from the third quarter of the fiscal year ending March 2022 and normalization by year-end. It stated that there was no material impact on accounting estimates. - FY2021-Q2RestatedAnnual report
「There were no material changes during the second quarter of the current consolidated cumulative period in the assumptions and accounting estimates, including those concerning when the effects of COVID-19 would subside. The Group considers these estimates reasonable, but the effects of the spread of COVID-19 contain many uncertainties, and changes beyond its assumptions could have a material impact on the Group’s financial statements.」
The company stated that there were no material changes in the assumptions concerning when the pandemic would subside or in the accounting estimates, while continuing to indicate the possibility of a material impact on the financial statements from changes beyond its assumptions. - FY2021-Q1RestatedAnnual report
「The Group considers these estimates reasonable, but the effects of the spread of COVID-19 contain many uncertainties, and changes beyond its assumptions could have a material impact on the Group’s financial statements.」
Based on the effects of COVID-19, the company made accounting estimates concerning the recoverability of deferred tax assets and the valuation of investments in securities without market values. It continued to indicate the possibility of a material impact on the financial statements from changes beyond its assumptions. - FY2020First statedAnnual report
「The Group holds listed and unlisted shares. Accordingly, securities with market values may be subject to impairment depending on stock market conditions, while securities without market values may be subject to impairment depending on changes in the financial condition of the investee, potentially affecting the Group’s financial position and operating results.」
The company disclosed for the first time the impairment risk associated with holdings of listed and unlisted shares arising from changes in stock market conditions and the financial condition of investees.