Valuation losses on investments, unrealized capital gains, and the risk of being unable to recover investments
First written in FY2022-Q2. 3 of 6 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2026.
i Cubed Systems moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2024: 9 of 12 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Amounts recognized in the consolidated financial statements for the consolidated fiscal year: operating investment securities (shares and other securities without market prices), 91,751; cost of sales, 72,612」
Cost of sales related to impairment of the excess earning power of investees increased from ¥29,102 thousand to ¥72,612 thousand. The principal assumptions used in the assessment were the progress of investees' business plans, their cash flow and the potential for listing or sale. - FY2025MaterialisedAnnual report
「Cost of sales increased year on year due to higher manufacturing expenses resulting from prioritizing certain minor software modifications in the CLOMO business in response to customer requests, as well as the recognition of costs of securities sold and impairment losses on investees in the investment business.」
Impairment losses on investees continued to occur during the consolidated fiscal year. Significant accounting estimates included ¥29,102 thousand in cost of sales for the consolidated fiscal year related to operating investment securities. - FY2024MaterialisedAnnual report
「Cost of sales in the investment business increased year on year as a result of impairment losses on investees held through the Group's CVC fund.」
Impairment losses on investees actually occurred for the second consecutive consolidated fiscal year and were disclosed under significant accounting estimates as ¥55,077 thousand in cost of sales for the consolidated fiscal year. - FY2024-Q3MaterialisedAnnual report
「Cost of sales in the investment business increased year on year as a result of impairment losses on investees held through the Group's CVC fund.」
The impairment loss on an investee that had previously been disclosed as a risk actually occurred during the cumulative consolidated third quarter. - FY2022-Q3RestatedAnnual report
「Depending on the business conditions of investee companies, impairment losses on securities held may arise and affect the Group's business development, operating results and financial position. In addition, there is no guarantee that shares and other investments will be sold at a price exceeding their acquisition cost, and expected capital gains may not be realized or the investment funds may not be recovered.」
The company continues to disclose the risks of impairment losses associated with the investment business, unrealized capital gains and inability to recover investment funds. - FY2022-Q2First statedAnnual report
「Depending on the business conditions of investee companies, impairment losses on securities held may arise and affect the Group's business development, operating results and financial position. In addition, there is no guarantee that shares and other investments will be sold at a price exceeding their acquisition cost, and expected capital gains may not be realized or the investment funds may not be recovered.」
With the launch of the investment business, the company has listed impairment losses on investees, unrealized expected capital gains and inability to recover investment funds as new risks.