Impairment Risk from Deterioration in the Excess Earnings Power of Unlisted Shares
First written in FY2022. 2 of 3 entries say "Materialised", first in FY2026-H1. Latest entry: FY2026.
Serverworks moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 6 of 13 companies on the "Worse" side.
6 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「As achievement of the business plan for G-gen Co., Ltd., whose shares we hold, was no longer expected during the current consolidated fiscal year, impairment accounting was applied to those shares in the non-consolidated financial statements.」
As achievement of the business plan for investee G-gen was no longer expected, the company applied impairment accounting to its shareholding. The risk of impairment of excess earning power in unlisted shares has also materialized in the full-year results. - FY2026-H1MaterialisedAnnual report
「As achievement of the business plan for G-gen Co., Ltd., whose shares we hold, was no longer expected during the current interim consolidated accounting period, impairment accounting was applied to those shares in the non-consolidated financial statements.」
As achievement of the business plan for investee G-gen was no longer expected, the company applied impairment accounting to its shareholding. The risk of impairment of excess earning power at the time of investment has materialized. - FY2022First statedAnnual report
「When the excess earning power expected at the time of investment can no longer be expected and the real value has declined substantially, impairment accounting is applied. If excess earning power can no longer be expected, such as when the investee faces difficulty executing its business plan, this may affect the consolidated financial statements for the following consolidated fiscal year.」
The company newly identified the risk that excess earning power reflected in the acquisition of unlisted shares could be impaired, leading to impairment accounting, due to business progress, growth prospects, financing conditions, and other factors. The carrying amount of the relevant unlisted shares is ¥129.979 million.