Risk of inventory carrying-value write-downs due to declining profitability
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2018: 10 of 37 companies on the "Worse" side.
39 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「For the current fiscal year, inventory valuation losses or reversals of valuation losses (△) amounted to △¥1,091 million.」
Rather than recording an inventory valuation loss, a ¥1,091 million reversal of valuation losses was included in cost of sales. - FY2018RestatedAnnual report
「If raw material and fuel purchase prices rise, fixed manufacturing costs increase, production volumes decline, product selling prices fall or other such events occur, the carrying amount of inventories may be written down.」
The risk of inventory write-downs due to lower profitability was reiterated. - FY2016First statedAnnual report
「If the net realizable value of inventories, including products that serve as the units for write-downs, falls below cost as a result of higher raw material and fuel purchase prices, higher fixed manufacturing costs, lower production volumes, lower product selling prices or other factors,」
Risk of valuation losses when profitability declines under accounting standards.