Capitalization of Game Title Assets and Impairment Due to Declining Profitability
First written in FY2021. 3 of 4 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2024.
Appirits moved to the "Worse" side of this theme in 2021, 2 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 9 of 13 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「For a game title whose originally anticipated excess earning power was no longer expected, our Group reduced its carrying amount to its recoverable amount and recognized the decrease, an impairment loss of ¥20.567 million, as an extraordinary loss.」
An impairment loss totaling ¥20.567 million was recognized for game title-related content assets of ¥17.345 million and long-term prepaid expenses of ¥3.222 million. - FY2023MaterialisedAnnual report
「For game titles whose originally anticipated excess earning power was no longer expected, our Group reduced their carrying amounts to recoverable amounts and recognized the decrease, an impairment loss of ¥40.821 million, as an extraordinary loss. The impairment loss comprised ¥9.6 million for software and ¥31.221 million for goodwill.」
An impairment loss totaling ¥40.821 million was recognized for game title-related software of ¥9.6 million and goodwill of ¥31.221 million. - FY2022-Q2MaterialisedAnnual report
「The impairment loss recognized during the cumulative second-quarter period was ¥36.445 million.」
An impairment loss of ¥36.445 million was actually recognized on software assets related to game titles due to declining profitability. - FY2021First statedAnnual report
「Software capitalized for accounting purposes may require recognition of an impairment loss if development is discontinued for any reason or profitability declines significantly after release, which could affect our business and other operations.」
Risk of impairment associated with capitalizing game development costs as software assets.