Risk of a decline in the value of shares in affiliated companies and excess earning power
First written in FY2021. 2 of 5 entries say "Materialised", first in FY2023. Latest entry: FY2024.
Accrete moved to the "Worse" side of this theme in 2024.
1 other company's latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「For the customer-related assets of VietGuys J.S.C., we determined during the current consolidated fiscal year that there were indications of impairment after revising the business plan in response to changes in Vietnam's market environment.」
We recognised an impairment loss on VGS's customer-related assets, affecting the valuation of the excess earning power recognised at the time of the acquisition. - FY2023MaterialisedAnnual report
「During the current fiscal year, we recognised an impairment loss on the asset group including 株式会社Ｘｏｘｚｏ's customer-related assets and goodwill in the consolidated financial statements. As a result, the underlying value of the shares in that company declined significantly, so we reduced their carrying amount to the underlying value and recognised the decrease as a loss on valuation of shares in an affiliated company under extraordinary losses.」
Following the impairment of assets due to Xoxzo's failure to meet its performance targets, we recognised a loss on valuation of shares in an affiliated company of ¥115.905 million. - FY2022-Q2Finalisation of Xoxzo's provisional accounting treatmentAnnual report
「As a result, the provisionally calculated goodwill amount of ¥435.704 million decreased by ¥291.748 million upon finalisation of the accounting treatment, resulting in ¥143.956 million.」
The provisional accounting treatment for Xoxzo's business combination was finalised, and the goodwill amount was revised from ¥435.704 million to ¥143.956 million. - FY2022-Q1Finalisation of provisional accounting treatmentAnnual report
「As a result, the provisionally calculated goodwill amount of ¥299.367 million decreased by ¥177.602 million upon finalisation of the accounting treatment, resulting in ¥121.764 million.」
The provisional accounting treatment for TechnoMix's business combination was finalised, and the goodwill amount was revised from ¥299.367 million to ¥121.764 million. - FY2021First statedAnnual report
「The key assumption in estimating excess earning power is the revenue growth rate in each affiliated company's business plan. The revenue growth rate incorporates management's significant judgments, mainly concerning user growth and market growth rates.」
We newly disclosed the possibility that impairment accounting may become necessary for ¥543.932 million in shares of affiliated companies, comprising ¥395.915 million for TechnoMix and ¥139.017 million for Xoxzo, if the underlying value or excess earning power declines due to poor performance at the affiliated companies or other factors.