Goodwill Impairment Risk Associated With M&A
First written in FY2024. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Tenda moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「At the end of the current consolidated fiscal year, the Company determined that the asset group related to Skyarts, including goodwill, showed indications of impairment because profit or loss arising from operating activities after goodwill amortization had remained negative. The Company is considering whether recognition of an impairment loss is necessary.」
The Company determined that the Skyarts asset group showed indications of goodwill impairment. However, no impairment loss was recognized because future cash flows were expected to exceed the carrying amount. - FY2024First statedAnnual report
「The Group records intangible fixed assets, including goodwill, on its consolidated balance sheet. If the Group's management plans deteriorate due to a sharp downturn in economic conditions, changes in the business environment or competitive conditions, changes in laws and regulations, or changes in the Group's business strategy, the recognition of impairment losses could affect its operating results and financial position.」
Against the backdrop of increased goodwill from multiple business combinations, the Company has for the first time separately identified impairment risk arising from economic, competitive, regulatory and strategic changes as a principal risk.