Risk of recovering investments and goodwill impairment associated with M&A and other transactions
First written in FY2021. 6 of 14 entries say "Worsened", first in FY2022-Q2. Latest entry: FY2026.
Visional moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
54 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「As of the end of the current consolidated fiscal year, the Group reported ¥12,036 million in goodwill and ¥3,646 million in customer-related assets arising from business combinations. Because the recoverability of certain investments was no longer considered probable due to a review of the strategy and other factors, their carrying amounts were reduced to recoverable amounts, with the resulting decrease recorded as an impairment loss under extraordinary losses.」
Goodwill arising from business combinations increased from ¥3,741 million at the end of the previous fiscal year to ¥12,036 million. An impairment loss of ¥496 million was actually recorded for assets whose recoverability was no longer considered probable due to a review of the strategy and other factors. The impairment was reported as relating to other intangible assets and was distinguished from goodwill itself. - FY2026-H1WorsenedAnnual report
「Total assets at the end of the interim consolidated accounting period were ¥108,153 million, an increase of ¥12,747 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥1,224 million increase in notes and accounts receivable and contract assets to ¥8,436 million, reflecting higher revenue, and a ¥10,646 million increase in goodwill to ¥14,387 million following the acquisition of shares in a subsidiary.」
The goodwill balance increased substantially from ¥3,741 million at the end of the previous fiscal year to ¥14,387 million, mainly due to the acquisition of Thinkings and other factors. Although the asset exposure that could be subject to impairment if the business plan is not achieved expanded, no impairment loss is reported. - FY2025WorsenedAnnual report
「This was mainly due to a ¥1,218 million increase in goodwill resulting from the acquisition of shares in a subsidiary, bringing the balance to ¥3,741 million.」
The goodwill balance increased from ¥2,523 million at the end of the previous fiscal year to ¥3,741 million, expanding the asset exposure that could be subject to impairment in connection with acquisitions. No impairment loss is reported. - FY2025-H1WorsenedAnnual report
「This was mainly due to a ¥1,276 million increase in goodwill resulting from the acquisition of shares in a subsidiary involving a change in the scope of consolidation, bringing the balance to ¥3,799 million.」
The goodwill balance increased from ¥2,523 million at the end of the previous consolidated fiscal year to ¥3,799 million due to the acquisition of shares in a subsidiary. Although the asset exposure that could be subject to impairment if post-acquisition business plans are not achieved expanded, the occurrence of an impairment loss was not mentioned. - FY2024-Q3MitigatedAnnual report
「Intangible assets Goodwill 2,799 2,657」
The goodwill balance decreased from ¥2,799 million at the end of the previous year to ¥2,657 million, reducing the asset exposure potentially subject to impairment in connection with acquisitions. The occurrence of an impairment loss was not mentioned. - FY2024-Q2MitigatedAnnual report
「Intangible assets Goodwill 2,799 2,548」
The goodwill balance decreased from ¥2,799 million at the end of the previous year to ¥2,548 million, reducing the asset exposure potentially subject to impairment in connection with acquisitions. The occurrence of an impairment loss was not mentioned. - FY2024-Q1MitigatedAnnual report
「Intangible assets Goodwill 2,799 2,674」
The goodwill balance decreased from ¥2,799 million at the end of the previous year to ¥2,674 million, reducing the asset exposure potentially subject to impairment in connection with acquisitions. The occurrence of an impairment loss was not mentioned. - FY2023MitigatedAnnual report
「As of the end of July 2023, the group had recognized ¥2,799 million in goodwill and ¥1,356 million in customer-related assets arising from business combinations.」
The goodwill balance decreased from ¥3,300 million at the end of the previous year to ¥2,799 million, reducing the asset exposure potentially subject to impairment in connection with acquisitions. The occurrence of an impairment loss was not mentioned. - FY2023-Q3MitigatedAnnual report
「Intangible assets Goodwill 3,300 2,924」
The goodwill balance decreased from ¥3,300 million at the end of the previous consolidated fiscal year to ¥2,924 million, reducing the asset exposure potentially subject to impairment in connection with acquisitions. The occurrence of an impairment loss was not mentioned. - FY2023-Q1MitigatedAnnual report
「Following the finalization of this provisional accounting treatment, significant revisions to the initial allocation of the acquisition cost were reflected in the comparative information included in the quarterly consolidated financial statements for the cumulative first quarter. As a result, ¥461 million was allocated to other intangible fixed assets and ¥154 million to other non-current liabilities, reducing the provisionally calculated goodwill by ¥306 million from ¥911 million to ¥605 million.」
The provisional accounting treatment for the business combinations involving IEYASU and EasySoft was finalized, and the amount of goodwill was reduced from the initial provisional amount. The goodwill balance potentially subject to impairment risk associated with the acquisitions decreased from ¥3,958 million at the end of the previous year to ¥3,177 million at the end of the current quarter, due to the finalization of the accounting treatment and other factors. - FY2022WorsenedAnnual report
「As of the end of July 2022, the group had recognized ¥3,958 million in goodwill and ¥980 million in customer-related assets arising from business combinations. If the expected cash flows from these assets are not generated due to deviations from future business plans or other factors, the group’s business results and financial condition could be affected, including through the recognition of impairment losses.」
Goodwill related to acquisitions increased from ¥1,296 million at the end of the previous year to ¥3,958 million, expanding the asset exposure that could be subject to impairment if business plans are not achieved. The occurrence of an impairment loss itself was not mentioned. - FY2022-Q3WorsenedAnnual report
「This was attributable mainly to an increase of ¥2,812 million in goodwill to ¥4,109 million following the acquisition of shares in IEYASU株式会社 and イージーソフト株式会社.」
Goodwill increased from ¥1,296 million at the end of the previous consolidated fiscal year to ¥4,109 million due to the acquisitions of IEYASU and EasySoft. Although the asset exposure that could be subject to impairment if post-acquisition business plans are not achieved expanded, the occurrence of an impairment loss was not mentioned. - FY2022-Q2WorsenedAnnual report
「This was attributable mainly to an increase of ¥795 million in goodwill to ¥2,092 million following the acquisition of shares in IEYASU株式会社 and other factors.」
Goodwill increased from ¥1,296 million to ¥2,092 million due to the acquisition of IEYASU and other factors, expanding the asset exposure that could be subject to impairment if post-acquisition business plans are not achieved. The occurrence of an impairment loss itself was not mentioned. - FY2021First statedAnnual report
「As of the end of July 2021, the group had recognized ¥1,296 million in goodwill and ¥1,123 million in customer-related assets arising from business combinations. If the expected cash flows from these assets are not generated due to deviations from future business plans or other factors, the group’s business results and financial condition could be affected, including through the recognition of impairment losses.」
It discloses the amounts of goodwill and customer-related assets recognized in connection with acquisitions and explicitly identifies the impairment risk if business plans are not achieved.