Risks Relating to Investment Recoverability and Unrecognized Liabilities Following Acquisitions, Joint Ventures and Strategic Alliances
First written in FY2020-Q3. 3 of 5 entries say "Materialised", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「This is a loss on valuation of shares in 株式会社ライブドア, a consolidated subsidiary of the company.」
A loss on valuation of shares in an affiliated company of ¥4,101.03 million was recorded for livedoor shares, and risks related to post-acquisition excess earning power and investment recovery materialized in the parent company’s standalone financial statements. - FY2025MaterialisedAnnual report
「An impairment loss was recognized on goodwill related to business assets because excess earning power could no longer be expected, and on customer-related assets among the business assets related to the livedoor Blog because the recoverability assessment incorporating the risks indicated that recovery of the investment could no longer be expected.」
Impairment losses were recorded on ¥317.469 million of acquisition-related goodwill and ¥1,734.518 million of customer-related assets for livedoor Blog, among other items, meaning that risks related to post-acquisition investment recovery and excess earning power continued to materialize. - FY2024MaterialisedAnnual report
「Following evaluations under the Accounting Standard for Financial Instruments of 株式会社ミンカブWeb3ウォレット, which became a subsidiary in May 2022, and certain minority investments made to achieve future synergies with the company’s business, the company recorded an impairment loss and a loss on valuation of investment securities.」
For acquired companies and investees, a loss on valuation of investment securities of ¥168.852 million and an impairment loss of ¥243.965 million were recorded, meaning that risks related to investment recovery and excess earning power materialized. - FY2022RestatedAnnual report
「Before proceeding with these transactions, the company will carefully review the results of risk analyses covering market trends and needs, the target company’s financial, legal and business matters, and the group’s business portfolio, and will analyze normalized earning power.」
The company continues to state its policy of conducting due diligence and risk analysis in connection with acquisitions, joint ventures and strategic alliances, as well as the risk of being unable to recover investments and other risks. - FY2020-Q3First statedAnnual report
「Despite prior investigations and reviews, issues that could not be identified through those investigations may arise after an acquisition or similar transaction, including significant changes in market conditions, the occurrence of contingent liabilities or the discovery of unrecognized liabilities. In addition, if an acquired company fails to progress as planned and the invested funds cannot be recovered, this could affect the group’s business development, financial condition and operating results.」
In line with the policy of pursuing acquisitions, joint ventures and strategic alliances, new risks were identified relating to post-acquisition changes in market conditions, contingent and unrecognized liabilities, and the inability to recover investments.