Impairment and Guarantee Liability Risks Associated with the LINE Business Integration
First written in FY2021-Q2. 1 of 4 entries say "Materialised", first in FY2021. Latest entry: FY2024-Q1.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2024-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no occurrences of the major risks that management recognizes as potentially having a material impact on the Group's financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in the annual securities report for the previous fiscal year, and no material changes to the section titled "Business and Other Risks" in that report.」
The company has reaffirmed its treatment of the impairment and guarantee liability risks associated with the LINE business integration as involving no material changes. - FY2022-Q2MitigatedAnnual report
「The loan and guarantee agreements terminated on 30 September 2021 upon full repayment by the borrower.」
The loan and guarantee agreements related to LINE's financing terminated upon full repayment by the borrower, eliminating the guarantee exposure relating to Tranches B and D and other tranches. - FY2021MaterialisedAnnual report
「Revenue of the acquired company recognized in the consolidated statement of profit or loss for the consolidated fiscal year after the acquisition date was ¥25,205 million, and its loss for the period was ¥6,355 million. The loss for the period included an impairment loss of ¥10,699 million and deferred tax income of ¥3,366 million related to that impairment loss.」
For the LINE business after the integration, the company recorded revenue of ¥25.205 billion after acquisition, a loss for the period of ¥6.355 billion, and an impairment loss of ¥10.699 billion, demonstrating that impairment and performance risks associated with the integration had materialized. - FY2021-Q2First statedAnnual report
「On the effective date of the share exchange, the company will assess impairment by comparing the acquisition cost and fair value of LINE Corporation (currently LINE Split Preparation Corporation, the entity succeeding to LINE's business), with the acquisition cost calculated by multiplying the number of the company's shares to be delivered in accordance with the share exchange ratio by the closing share price on the effective date. Subject to completion of the business integration with LINE, the company has provided joint and several guarantees to the respective financial institutions for the borrowing obligations relating to LINE's Tranche B (¥68.6 billion) and Tranche D (¥5.7 billion).」
In connection with the business integration with LINE, the company newly disclosed an impairment assessment based on a comparison of the acquisition cost and fair value after the share exchange, as well as conditional joint and several guarantees for borrowing obligations totaling ¥74.3 billion. There was no outstanding guarantee balance.