Risk of Software Asset Obsolescence and Impairment
First written in FY2022. 1 of 3 entries say "Materialised", first in FY2025. Latest entry: FY2026.
Commerce One Holdings 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 2024: 19 of 45 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「At Commerce Connect Co., Ltd., a newly established subsidiary formed in April 2025, the Group is developing an integrated e-commerce platform with AI-powered next-generation ordering and inventory-management functions, and is capitalizing the related software assets.」
Software assets are now being capitalized not only for Future Shop but also for Commerce Connect, increasing exposure to impairment risk from technological obsolescence and slower sales. - FY2025MaterialisedAnnual report
「Following a review of the business plan, the Group determined that the originally projected earnings could no longer be expected. The carrying amount was therefore reduced to zero, and the reduction was recognized as an impairment loss under extraordinary losses.」
Impairment losses were recognized on ¥60.694 million of Sorairo software and ¥7.588 million of Softel software, meaning that the risks of software-asset obsolescence and slower earnings materialized as actual losses. - FY2022First statedAnnual report
「Software assets are amortized on a straight-line basis each period once recognized. However, if technology becomes obsolete or sales of the service slow, impairment may be recognized on the capitalized amount. No such indications have been identified at present, but any future impairment could affect the Group's operating results.」
The risk of impairment due to technological obsolescence or slower sales is disclosed separately in connection with the capitalization of development costs for commerce creator and other products.