Declining Profitability of Fixed Assets and Risk of Impairment Losses
First written in FY2018. 8 of 10 entries say "Materialised", first in FY2018. Latest entry: FY2026.
Awa Paper & Technological Company 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 2025: 43 of 77 companies on the "Worse" side.
60 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「During the current consolidated fiscal year, the carrying amounts of asset groups with declining profitability were reduced to their recoverable amounts, and the resulting reduction of ¥88.326 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥88.326 million was recognized on machinery and equipment at the Tokushima and Komatsushima plants due to declining profitability. - FY2025MaterialisedAnnual report
「During the current consolidated fiscal year, the carrying amounts of asset groups with declining profitability were reduced to their recoverable amounts, and the resulting reduction of ¥18.206 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥18.206 million was recognized on construction in progress at the Tokushima site due to declining profitability. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, the carrying amounts of asset groups with declining profitability were reduced to their recoverable amounts, and the resulting reduction of ¥29.150 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥29.150 million was recognized for the asset groups at the Tokushima and Komatsushima plants due to declining profitability. - FY2023MaterialisedAnnual report
「During the current consolidated fiscal year, the carrying amounts of asset groups with declining profitability were reduced to their recoverable amounts, and the resulting reduction of ¥866.259 million was recognized as an impairment loss under extraordinary losses. The loss comprised ¥819.128 million for Thai United Awa Paper Co., Ltd. and ¥47.130 million for the Tokushima site.」
Declining profitability at part of a production line at the Thai subsidiary and at the Tokushima site resulted in a total impairment loss of ¥866.259 million. - FY2021MaterialisedAnnual report
「During the current consolidated fiscal year, the carrying amounts of asset groups with declining profitability were reduced to their recoverable amounts, and the resulting reduction of ¥137.694 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥137.694 million was recognized on buildings, machinery and equipment and other assets due to declining profitability at the Tokushima site. - FY2019RestatedAnnual report
「Our group applies the Accounting Standard for Impairment of Fixed Assets to the fixed assets it owns. If profitability declines due to changes in the business environment and it becomes unlikely that the investment will be recovered, we may recognize an impairment loss, which could affect our group’s results.」
The company continues to disclose the risk of additional impairment losses due to declining profitability for fixed assets on which impairment losses were recognized in the previous fiscal year. - FY2018MaterialisedAnnual report
「At our Tokushima and Komatsushima plants, profitability declined because production was transferred overseas and orders decreased. In addition, following a review for impairment under the Accounting Standard for Impairment of Fixed Assets due to declining land market prices, the carrying amounts of fixed assets held by both plants, including land, buildings and production equipment, were reduced to their recoverable amounts, and an impairment loss of ¥1,680 million was recognized.」
The Tokushima and Komatsushima plants recognized an impairment loss of ¥1,680 million against a backdrop of declining profitability and land prices.