Impairment Risk for IoT Software and LINEO-Related Goodwill
First written in FY2021. 1 of 4 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Cybertrust Japan moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 6 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Company determined that there were no indications of impairment for goodwill because actual results had not diverged from the business plan used for the investment decision, profit and cash flow from operating activities had remained positive, and no significant deterioration in the business environment was expected.」
After recognizing an impairment loss on IoT-related software in FY2024, the company determined that there were no indications of impairment for Lineo Solutions-related goodwill in FY2026, citing achievement of the plan and positive profit and cash flow. - FY2024MaterialisedAnnual report
「During the consolidated fiscal year, because the original plan for the asset group related to IoT services fell behind schedule, we reduced its carrying amount to its recoverable amount and recognized the reduction as an impairment loss under extraordinary losses. The impairment consisted of ¥299,540 thousand for software and ¥45,689 thousand for software under development. Recoverable amount was measured based on value in use and assessed at zero.」
Recognized an impairment loss of ¥345,230 thousand on IoT-related assets because the plan was delayed, assessing recoverable amount at zero. - FY2022WorsenedAnnual report
「Based on available internal and external information, the Company examined whether there were any indications of impairment for the asset group related to its IoT services and determined that indications of impairment of fixed assets existed. However, because the total undiscounted future cash flows generated by the asset group exceeded its carrying amount, the Company determined that no impairment loss needed to be recognized for the current consolidated fiscal year.」
The company determined that there were indications of impairment for IoT-related assets, but did not recognize an impairment loss because future cash flows exceeded the carrying amount. - FY2021First statedAnnual report
「These software assets and goodwill are recognized as intangible fixed assets. The Company measures the future cash-flow-generating capacity of these assets each fiscal year and assesses whether there are any indications of impairment.」
The company recognized ¥220 million in IoT-related software, ¥478 million in software under development and ¥116 million in goodwill, and did not recognize an impairment loss in the current fiscal year.