Impairment risk for software and goodwill
First written in FY2024. 1 of 3 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 5 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Of these assets, the company is considering whether to recognize an impairment loss on certain software and software under development used to provide services, with a carrying amount of ¥66.932 million, because indications of impairment have arisen due to declining profitability and other factors. As a result of the assessment, no impairment loss was recognized because the total estimated undiscounted future cash flows from the internally used software for providing the relevant services exceeded its carrying amount.」
After recognizing an impairment loss of ¥81.580 million in the previous fiscal year, the company identified assets subject to an impairment assessment in the current fiscal year but did not recognize an impairment loss. It also determined that there were no indications of impairment for goodwill. - FY2025MaterialisedAnnual report
「During the consolidated fiscal year, the company recognized an impairment loss of ¥81.580 million as an extraordinary loss on part of its internally used software for providing cloud-based solutions.」
Although no impairment loss was recognized in the previous fiscal year, the company recognized an impairment loss of ¥81.580 million on software used to provide cloud-based solutions. - FY2024First statedAnnual report
「Of the ¥1,550.053 million in software, the company is considering whether to recognize an impairment loss on certain internally used software and software under development used to provide services, with a carrying amount of ¥56.845 million, because indications of impairment have arisen due to declining profitability and other factors.」
The company identified indications of impairment for software assets with a carrying amount of ¥56.845 million and conducted an assessment, but did not recognize an impairment loss for the fiscal year because estimated undiscounted future cash flows exceeded the carrying amount. It also disclosed valuation risks related to goodwill of ¥312.880 million arising from changes in the business plan and market conditions.