Capitalization and Investment Recovery Risk Relating to Software in Progress
First written in FY2024. 2 of 4 entries say "Mitigated", first in FY2026-H1. Latest entry: 2026-05-14.
0 other companies' latest entry also says "Mitigated".
- 2026-05-14MitigatedEarnings
「Although software under construction decreased by ¥199,424 thousand, software increased by ¥413,935 thousand.」
Software under construction decreased from ¥1,337,305 thousand at the end of June 2025 to ¥1,137,880 thousand at the end of March 2026, further reducing the balance associated with the risk of recognizing a loss if the investment cannot be recovered. - FY2026-H1MitigatedAnnual report
「Software under development ¥1,337.305 million ¥1,041.804 million」
Software under development decreased from ¥1,337.305 million at the end of the previous fiscal year to ¥1,041.804 million at the end of the current interim accounting period. The balance associated with the risk of recognizing a loss if the investment cannot be recovered has declined. - FY2025WorsenedAnnual report
「Software under development ¥588.450 million ¥1,337.305 million」
Software under development increased from ¥588.450 million in the previous fiscal year to ¥1,337.305 million. The company continues to disclose the risk of recognizing a loss if the investment cannot be recovered because of factors such as the discontinuation of development or a decline in profitability. - FY2024First statedAnnual report
「Amount recognized in the consolidated financial statements for the current consolidated fiscal year: software under development, ¥588.450 million. The capitalization of software under development is assessed by comparing the expected sales proceeds from the development project with the total development costs, including the carrying amount and additional planned costs. If the invested software is not put into use because of factors such as a significant decrease in future cash flows resulting from a decline in the profitability of the Company's business, or if recovery of the investment in part of the software is not expected, a loss must be recognized. This could have a material impact on the consolidated financial statements for the following consolidated fiscal year.」
For software under development of ¥588.450 million, the company disclosed for the first time, separately, the accounting risks relating to future cash flows based on the number of customers and contract prices, and the recoverability of the investment.