Impairment Risk for Software Assets Related to New Development Costs
First written in FY2021-Q3. 8 of 16 entries say "Restated". Latest entry: 2026-10-13.
WonderPlanet moved to the "Worse" side of this theme in 2025, 6 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".
- FY2026-H1MaterialisedAnnual report
「Recent KPIs have remained below the business plan prepared when the operating rights were acquired. On the assumption that operation of the title will continue, we conservatively reassessed future earnings forecasts. Because the total undiscounted future cash flows from the operating rights fell below their carrying amount, we recognized an impairment loss and recorded an impairment loss of ¥81.666 million by reducing the carrying amount to the recoverable amount.」
An impairment loss of ¥81.666 million was recognized for the Crash Fever operating rights due to downward deviations of KPIs from the business plan and insufficient future cash flows. - FY2025WorsenedAnnual report
「In identifying indications of impairment of the operating rights, we assess available information, including deviations from the business plan at the time of acquisition and changes in the business environment and market trends. At the end of the fiscal year, we determined that indications of impairment existed because revenue and operating profit were below the business plan as a result of declines in the number of users and average spending per user. However, because the total undiscounted future cash flows calculated based on the business plan exceeded the carrying amount, we did not recognize an impairment loss.」
For the Crash Fever operating rights, indications of impairment were identified for the first time due to declines in the number of users and average spending per user and downward deviations from the business plan. No impairment loss itself was recognized. - FY2024RestatedAnnual report
「In identifying indications of impairment of the operating rights, we assess available information, including deviations from the business plan at the time of acquisition and changes in the business environment and market trends. As a result of this assessment, we did not identify any indications of impairment during the fiscal year.」
In addition to new development costs, the Company continues to assess impairment of the Crash Fever operating rights based on the business plan and market trends, and states that there were no indications of impairment during the fiscal year. - FY2023RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as incurred rather than capitalizing them on the balance sheet.」
The accounting treatment of expensing new development costs as incurred and the resulting recognition of reduced future impairment risk continue. - FY2023-Q3RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as period costs rather than capitalizing them on the balance sheet. We believe that not capitalizing software reduces the risk of future impairment.」
The accounting policy of expensing new development costs for apps and games as incurred and not capitalizing software, together with the recognition that this reduces future impairment risk, has been reiterated. - FY2023-Q1RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as period costs rather than capitalizing them on the balance sheet. We believe that not capitalizing software reduces the risk of future impairment.」
The accounting policy of expensing new development costs for apps and games as incurred and not capitalizing software, thereby reducing future impairment risk, has been reiterated. - FY2022Expanded impairment assessment to include operating rightsAnnual report
「Operating rights are amortized on a straight-line basis over the period during which their benefits are expected to be realized. In identifying indications of impairment of the operating rights, we assess available information, including the profit or loss for Crash Fever in the business plan and changes in the business environment and market trends. As a result of this assessment, we did not identify any indications of impairment during the fiscal year.」
In addition to the impairment risk associated with new development costs, the Company is assessing indications of impairment for the ¥326.666 million operating rights for Crash Fever acquired in May 2022. - FY2022-Q3RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as period costs rather than capitalizing them on the balance sheet. We believe that not capitalizing software reduces the risk of future impairment.」
The recognition that expensing new development costs as incurred and not capitalizing software reduces future impairment risk has been reiterated. - FY2022-Q2RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as period costs rather than capitalizing them on the balance sheet. We believe that not capitalizing software reduces the risk of future impairment.」
The explanation that expensing new development costs as incurred, rather than capitalizing them, reduces future impairment risk has been reiterated. - FY2022-Q1RestatedAnnual report
「For accounting purposes, we expense new development costs for apps and games as period costs rather than capitalizing them on the balance sheet. We believe that not capitalizing software reduces the risk of future impairment.」
The explanation that expensing new development costs as incurred, rather than capitalizing them, reduces future impairment risk has been reiterated. - FY2021RestatedAnnual report
「We believe that not capitalizing software reduces the risk of future impairment.」
The recognition that not capitalizing new development costs reduces future impairment risk has been reiterated. - FY2021-Q3First statedAnnual report
「We believe that not capitalizing software reduces the risk of future impairment.」
The Company explains the impairment risk it identifies and how that risk is reduced.