Risk of impairment of software assets
First written in FY2021. 2 of 4 entries say "Materialised", first in FY2023. Latest entry: FY2024.
Magmag moved to the "Worse" side of this theme in 2023.
1 other company's latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「Impairment loss 7,484」
An impairment loss of ¥7.484 million was recognised during the fiscal year, indicating that the impairment risk associated with reduced usefulness of software and other assets continues to materialise. - FY2023MaterialisedAnnual report
「Special losses for the fiscal year amounted to ¥397.412 million, mainly due to the recognition of impairment losses.」
An impairment loss of ¥387.412 million was recognised during the fiscal year in relation to the risk of impairment due to reduced market fit or usefulness of software and other assets, demonstrating that the risk had materialised. - FY2022RestatedAnnual report
「However, if the development becomes less useful because it does not meet market needs, or if the software ceases to function due to a serious bug or other issue, the company may recognise an impairment loss on these assets.」
The risk of impairment due to reduced software market fit or serious bugs is reiterated. - FY2021First statedAnnual report
「However, if the development becomes less useful because it does not meet market needs, or if the software ceases to function due to a serious bug or other issue, the company may recognise an impairment loss on these assets. In that event, a substantial expense may be incurred at once, which may affect the company’s business activities, financial position and operating results.」
The risk of impairment and related expenses due to reduced market fit or serious bugs in software for the company’s own services is identified for the first time.