Goodwill impairment risk arising from weaker earnings prospects
First written in FY2019. 4 of 9 entries say "Materialised", first in FY2021. Latest entry: FY2026.
Clip moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2023: 7 of 13 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Other tangible fixed assets: ¥20,091 thousand; software: ¥2,368 thousand; goodwill: ¥7,773 thousand; long-term prepaid expenses: ¥297 thousand; total: ¥30,529 thousand」
With regard to the impairment risk from deteriorating earnings prospects for goodwill, the company also recorded a goodwill impairment loss of ¥7.773 million in the fiscal year ending March 2026. Although this was down from ¥32.016 million in the previous fiscal year, the risk continues to materialize. - 2026-06-03MaterialisedGeneral Meetings of Shareholders
「Goodwill ¥7.773 million」
The company recorded an impairment loss of ¥7.773 million, including goodwill related to cram schools in Kurashiki, Okayama Prefecture, and Obu, Aichi Prefecture, reflecting the continued materialization of risk from deteriorating earnings prospects for the goodwill. - FY2025MaterialisedAnnual report
「As the earnings initially anticipated could no longer be expected, an impairment loss was recognized.” “Goodwill ¥32.016 million」
The impairment risk from deteriorating earnings prospects for goodwill materialized, and the company recorded an impairment loss of ¥32.016 million on goodwill in the fiscal year ended March 2025. The goodwill balance decreased from ¥172.297 million in the previous fiscal year to ¥101.705 million. - FY2024RestatedAnnual report
「The presence or absence of indicators of goodwill impairment is determined mainly using operating income or loss generated by the asset group to which the goodwill is attributable and future business plans. The future business plans use key assumptions such as trends in the number of students. Accordingly, changes in these assumptions could materially affect the consolidated financial statements for the following consolidated fiscal year.」
The company reiterates the risk of using operating income or loss, business plans and trends in the number of students to assess indicators of goodwill impairment. The goodwill balance increased to ¥172.297 million as a result of a business transfer. - FY2023ReframedAnnual report
「The presence or absence of indicators of goodwill impairment is determined mainly using operating income or loss generated by the asset group to which the goodwill is attributable and future business plans. The future business plans use key assumptions such as trends in the number of students. Accordingly, changes in these assumptions could affect the financial position and operating results in the following fiscal year.」
The acquisition of セア教育研究所 resulted in the recognition of ¥68.364 million in goodwill, and the risk of using business plans, including trends in the number of students, to assess indicators of goodwill impairment materialized again. - FY2022DroppedAnnual reportThe disclosures on significant accounting estimates and impairment losses for the fiscal year ended March 2022 contain no new disclosure concerning the impairment risk from deteriorating earnings prospects for goodwill.
- FY2021MaterialisedAnnual report
「Goodwill ¥29.117 million” “As the earnings initially anticipated could no longer be expected, an impairment loss was recognized.」
The impairment risk from deteriorating earnings prospects for goodwill materialized, and the company recorded an impairment loss of ¥29.117 million on goodwill in Nishinomiya, Hyogo Prefecture. - FY2020RestatedAnnual report
「The company also assesses the recoverability of the goodwill based on the performance and business plans of its subsidiaries. If the earnings initially anticipated can no longer be expected in the future and the need for impairment is identified, the company may record an impairment loss on the goodwill in the relevant consolidated fiscal year.」
The company reiterates the risk of impairing goodwill if earnings prospects deteriorate, based on the performance and business plans of its subsidiaries. No impairment loss was applicable for the fiscal year ended March 2020. - FY2019First statedAnnual report
「The group amortizes goodwill on a straight-line basis over the period in which it expects the goodwill to generate benefits. It assesses the asset's recoverability based on the subsidiary's performance and business plans. If the initially expected earnings can no longer be expected in the future and the need for impairment is identified, the group may record an impairment loss on goodwill in the relevant consolidated fiscal year.」
The company assesses the recoverability of goodwill based on the performance and business plans of its subsidiaries, and identifies the risk of recording impairment when earnings prospects deteriorate as a separate accounting-estimate theme. In the current fiscal year, it recorded an impairment loss of ¥7.105 million on goodwill related to AXIS CO.,LTD.