Goodwill Impairment Risk and Business Plan Assumptions
First written in FY2022-Q2. 10 of 11 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2019: 5 of 12 companies on the "Worse" side.
16 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rate was 0.7% in both the previous fiscal year and the current fiscal year, while the discount rates were 8.9% and 10.0%, respectively.」
For goodwill of ¥36,476 million, the company conducted an impairment test using a perpetual growth rate of 0.7%, a discount rate of 10.0% and other assumptions. Although it recognizes an impairment risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low because value in use is sufficiently higher than the carrying amount. - FY2025RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a perpetual growth rate of 0.7% thereafter, reflecting past performance and the external environment, using a discount rate of 8.9% based on the cash-generating unit's pre-tax weighted average cost of capital. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using a perpetual growth rate of 0.7%, a discount rate of 8.9% and other assumptions. Although it recognizes an impairment risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low. - FY2025-H1RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 0.5% in the fiscal year before the previous fiscal year and 0.7% in the previous fiscal year, while the discount rates were 9.6% and 8.4%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using the business plan, the growth rate thereafter and the discount rate as assumptions. Although it recognizes an impairment risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low. - FY2024-Q3RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.0% in the fiscal year before the previous fiscal year and 0.5% in the previous fiscal year, while the discount rates were 9.2% and 9.6%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using the business plan, the growth rate thereafter and the discount rate as assumptions. Although it recognizes an impairment risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low. - FY2024-Q2RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.0% in the fiscal year before the previous fiscal year and 0.5% in the previous fiscal year, while the discount rates were 9.2% and 9.6%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using the business plan, the growth rate thereafter and the discount rate as assumptions. Although it recognizes a risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low. - FY2024-Q1RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.0% in the fiscal year before the previous fiscal year and 0.5% in the previous fiscal year, while the discount rates were 9.2% and 9.6%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using the business plan, a perpetual growth rate of 0.5% and a discount rate of 9.6%. Although it recognizes an impairment risk from changes in key assumptions, it continues to judge that the likelihood of impairment is low. - FY2023RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a perpetual growth rate of 0.5% thereafter, reflecting past performance and the external environment, using a discount rate of 9.6% based on the cash-generating unit's pre-tax weighted average cost of capital. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For goodwill of ¥36,476 million, the company conducted an impairment test using a perpetual growth rate of 0.5%, a discount rate of 9.6% and other assumptions. Although it recognizes a risk from changes in key assumptions, it explains that the likelihood of impairment is low. - FY2023-Q3RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.0% in both the fiscal year before the previous fiscal year and the previous fiscal year, while the discount rates were 11.6% and 9.2%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For the goodwill impairment test, the company uses the business plan, growth rate and discount rate as assumptions, continues to recognize an impairment risk from changes in key assumptions, and continues to explain that the likelihood of impairment is low. - FY2023-Q2RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.0% in both the fiscal year before the previous fiscal year and the previous fiscal year, while the discount rates were 11.6% and 9.2%, respectively. Although changes in key assumptions used in the impairment test may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions change within a reasonably foreseeable range.」
For the goodwill impairment test, the company uses the business plan, growth rate and discount rate as assumptions, continues to recognize an impairment risk from changes in key assumptions, and continues to explain that the likelihood of impairment is low. - FY2022-Q3RestatedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management covering no more than 5 years and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.1% in the fiscal year before the previous fiscal year and 1.0% in the previous fiscal year, while the discount rates were 11.9% and 11.6%, respectively.」
The company continues to explain that the key assumptions in the goodwill impairment test are the business plan covering no more than 5 years, the growth rate and the discount rate, and that changes in these assumptions pose an impairment risk. - FY2022-Q2First statedAnnual report
「Value in use is calculated by discounting to present value the estimated cash flows based on a business plan approved by management covering no more than 5 years and a growth rate thereafter, reflecting past performance and the external environment, using a discount rate based on the cash-generating unit's pre-tax weighted average cost of capital. The growth rates were 1.1% in the fiscal year before the previous fiscal year and 1.0% in the previous fiscal year, while the discount rates were 11.9% and 11.6%, respectively. Although changes in key assumptions may give rise to an impairment risk, value in use is sufficiently higher than the carrying amount of the cash-generating unit, and the company judges that it is unlikely to fall below the carrying amount even if the key assumptions used in the impairment test change within a reasonably foreseeable range.」
The key assumptions in the goodwill impairment test are the business plan covering no more than 5 years, the growth rate and the discount rate. Although the company recognizes an impairment risk if these assumptions change, it currently judges the likelihood of impairment to be low.