Risk of Costs Associated with the Dissolution of an Employees' Pension Fund
First written in FY2016. 3 of 9 entries say "Mitigated", first in FY2018-Q3. Latest entry: FY2019.
The whole theme swung hardest in 2021: 1 of 8 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2019MitigatedAnnual report
「Following the determination of the amount payable upon liquidation of the Employees' Pension Fund, the unpaid amount of ¥353 million was transferred to “accounts payable” under “Other” current liabilities in the amount of ¥92 million and to “long-term accounts payable” under “Other” non-current liabilities in the amount of ¥261 million.」
The amount payable upon liquidation was determined and the provision for loss on dissolution of the Employees' Pension Fund was eliminated. The unpaid amount of ¥353 million was transferred to accounts payable and long-term accounts payable, reducing the uncertainty over the amount. - FY2019-Q2Transfer from provision for loss on dissolution to long-term accounts payableAnnual report
「The provision for loss on dissolution of the Employees' Pension Fund decreased by ¥457 million due to its transfer to long-term accounts payable」
The ¥457 million provision for loss on dissolution of the Employees' Pension Fund was transferred to long-term accounts payable, reducing the provision balance. This was disclosed as a transfer between liability accounts, not as a new extraordinary loss. - FY2019-Q1MitigatedAnnual report
「Provision for loss on dissolution of Employees' Pension Fund 457 －」
The ¥457 million provision for loss on dissolution of the Employees' Pension Fund recorded at the end of the previous consolidated fiscal year was zero at the end of the first-quarter consolidated accounting period under review. The balance sheet liability for costs associated with the dissolution has disappeared. - FY2018-Q3MitigatedAnnual report
「Net income attributable to owners of the parent improved substantially because no extraordinary loss related to the dissolution of the Employees' Pension Fund, which had occurred for 2 consecutive periods, was recorded during the cumulative third-quarter consolidated period under review.」
No extraordinary loss related to the dissolution of the Employees' Pension Fund, which had been recorded for 2 consecutive periods through the same period of the previous year, was recorded during the cumulative third-quarter consolidated period under review, reducing the impact of the cost burden in the current fiscal year. However, a ¥490 million provision for loss on dissolution of the Employees' Pension Fund remains on the balance sheet. - FY2017RestatedAnnual report
「The Fund was dissolved after receiving approval for dissolution and approval of the payment plan from the Minister of Health, Labour and Welfare on 27 January 2017. The funding shortfall for the substitutional portion associated with the dissolution of the Fund will be determined when the Fund's liquidation procedures are completed and has not yet been finalised. However, a reasonably calculated estimate of the funding shortfall as of 30 September 2016 has become available, and ¥490 million has been recorded as “Provision for loss on dissolution of Employees' Pension Fund” in extraordinary losses on the consolidated statement of income.」
Although dissolution of the Employees' Pension Fund has been completed, the final funding shortfall will not be determined until liquidation is completed, and a ¥490 million provision for loss on dissolution remains recorded. - FY2017-Q3MaterialisedAnnual report
「The funding shortfall for the substitutional portion associated with the dissolution of the Fund will be determined when the Fund's liquidation procedures are completed and has not yet been finalised. However, the Fund was dissolved after receiving approval for dissolution and approval of the payment plan from the Minister of Health, Labour and Welfare on 27 January 2017.」
The special dissolution planned for the previous quarter received approval for dissolution and approval of the payment plan, and the Fund was in fact dissolved. The ¥490 million provision for loss on dissolution remains recorded. - FY2017-Q2MaterialisedAnnual report
「The Japan Surfactant Industry Employees' Pension Fund (hereinafter, the “Fund”), in which the Company and 1 consolidated subsidiary participate, approved a dissolution policy at the representatives' meeting held on 20 February 2015 and had been proceeding with the application for dissolution. At the Fund's representatives' meeting held on 25 October 2016, a resolution for special dissolution was passed, and an application for special dissolution will be filed with the Kanto-Shinetsu Regional Bureau of Health and Welfare in the near future. Approval of the Fund's application for special dissolution is scheduled for January 2017. The amount of the funding shortfall for the substitutional portion as of the date of approval has not yet been determined, but a reasonably calculated estimate of the funding shortfall as of 30 September 2016 has become available. Accordingly, ¥490 million has been recorded as “Provision for loss on dissolution of Employees' Pension Fund” in extraordinary losses on the consolidated statement of income for the second quarter, and ¥490 million has been recorded as “Provision for loss on dissolution of Employees' Pension Fund” under non-current liabilities on the consolidated balance sheet for the second quarter.」
The resolution for special dissolution was passed and the application procedures progressed, with ¥490 million in costs associated with the dissolution recorded as a provision and an extraordinary loss. The cost burden risk has materialised in the form of actual accounting treatment. - FY2017-Q1RestatedAnnual report
「The Japan Surfactant Industry Employees' Pension Fund (general type), in which the Company and 1 consolidated subsidiary participate, approved a policy for special dissolution at the representatives' meeting held on 20 February 2015, and approved the allocation criteria for the deficit upon dissolution of the fund at the representatives' meeting held on 19 February 2016. These resolutions are expected to result in costs associated with the dissolution of the fund, but it is difficult to reasonably estimate the amount at present because certain factors remain uncertain.」
The policy for special dissolution of the Employees' Pension Fund, the expected costs and the difficulty of estimating the amount continued to be disclosed. - FY2016First statedAnnual report
「As considerable costs are expected to arise in connection with the liquidation of the fund, this may affect the business results and financial position of the Group.」
The policy for special dissolution and the allocation criteria for the deficit were approved, and retirement benefit expenses of ¥587 million and additional contributions of ¥68 million were recorded in the fiscal year.