Software Obsolescence and Impairment Risk
First written in FY2019. 6 of 7 entries say "Materialised", first in FY2020. Latest entry: FY2026.
iRidge moved to the "Worse" side of this theme in 2020, 4 years 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
「In addition, for APPBOX, the app business platform operated by the app business segment, we carried out a fundamental renewal, or rebuild, of the underlying architecture to support rapidly advancing AI technology and improve development productivity over the medium to long term. As a result, we recognized a loss on disposal of fixed assets of ¥231.881 million.」
The burden associated with software obsolescence and declining revenue-generating benefits has materialized as a ¥231.881 million loss on disposal of fixed assets related to the APPBOX platform renewal. - FY2022MaterialisedAnnual report
「Because the revenue originally anticipated could no longer be expected, we reduced the carrying amount of the above assets to their recoverable amount and recognized the reduction as an impairment loss.」
Impairment resulting from declining expectations for software-generated revenue has continued, and an impairment loss of ¥4.300 million on software related to a new business was recognized in the current consolidated fiscal year. - FY2021MaterialisedAnnual report
「Because the revenue originally anticipated could no longer be expected, we reduced the carrying amount of the above assets to their recoverable amount and recognized the reduction as an impairment loss.」
Impairment resulting from declining expectations for software-generated revenue has continued, and an impairment loss of ¥37.460 million on software was recognized in the current consolidated fiscal year. - FY2020MaterialisedAnnual report
「Because the revenue originally anticipated could no longer be expected, we reduced the carrying amount of the above assets to their recoverable amount and recognized the reduction as an impairment loss.」
The risk of software obsolescence and declining revenue-generating benefits has materialized as an impairment loss of ¥144.215 million on software used in the fintech business. - FY2019First statedAnnual report
「If the software's ability to generate revenue or reduce costs is materially impaired due to significant changes in future plans or usage, or service obsolescence, and impairment of the software becomes necessary, this could affect the Group's business and performance.」
For capitalized software, the company has disclosed for the first time, as an independent risk, the risk of impairment resulting from changes in future plans or usage and service obsolescence.