Impairment Risk for Goodwill and Software
First written in FY2022. 5 of 9 entries say "Materialised", first in FY2023. Latest entry: FY2026.
ExaWizards moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 5 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2026Sharp reduction in impairment lossesAnnual report
「We recorded ¥22 million as an extraordinary loss. This resulted from reducing the carrying amount of an asset group with declining profitability, consisting of software assets held by a consolidated subsidiary in the AI solution services business, to its recoverable amount and recording the resulting ¥22 million impairment loss.」
While impairment losses fell sharply from ¥2,434 million in the prior year to ¥22 million in the current year, impairment of software assets has continued to occur. - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」
The Company states that there were no material changes during the interim consolidated accounting period in the impairment risk relating to goodwill and software. - FY2025WorsenedAnnual report
「The Company recorded ¥2,579 million as an extraordinary loss. This was mainly attributable to a ¥140 million valuation loss on investment securities, resulting from a decline in the fair value of some investment securities held by the Company below their carrying value, and an impairment loss of ¥2,434 million.」
Impairment losses on software and other assets increased from ¥203 million in prior years to ¥2,434 million, and the stadium's customer-related assets and goodwill also became subject to impairment. - FY2024-Q3MaterialisedAnnual report
「During the second-quarter consolidated accounting period, the Company recorded an impairment loss of ¥164 million on software assets, tools, fixtures and equipment held by a consolidated subsidiary in the AI Product business. In addition, because some software assets held by the Company became idle assets, it recorded an impairment loss of ¥38 million.」
The Company also reported the total ¥203 million impairment loss recorded in the second quarter in the cumulative third-quarter figures, indicating that impairment arising from declining profitability and idling of software and other assets has continued to occur. - FY2024-Q2MaterialisedAnnual report
「The Company recorded an impairment loss of ¥164 million on software assets, tools, fixtures and equipment held by a consolidated subsidiary in the AI Product business. In addition, because some software assets held by the Company became idle assets, it recorded an impairment loss of ¥38 million.」
The Company recorded total impairment losses of ¥203 million in the second quarter, and the impairment risk arising from declining profitability and idling of software and other assets materialized. - FY2023MaterialisedAnnual report
「For business-use assets, the Company recognized an impairment loss because declining profitability made it unlikely that the investment would be recovered within the originally expected period.」
The Company also recorded a ¥4 million impairment loss on software for the fiscal year ended March 2023, indicating that the risk of declining software profitability materialized again. - FY2022First statedAnnual report
「In developing software, we carefully assess the market environment and other factors. However, if the software is no longer expected to be used due to sudden changes in the market or competitive environment, or if the investment is no longer expected to be recovered because of declining profitability, it may be subject to derecognition or impairment.」
The Company recorded an impairment loss of ¥53 million in the current period, mainly in the AI Product business and other operations, indicating that the risk of declining software profitability has materialized. The Company has also disclosed the possibility of goodwill impairment.