Declining Profitability and Impairment Risk for Land Used in the Business
First written in FY2016. 4 of 11 entries say "Materialised", first in FY2016. Latest entry: FY2024.
Paraca moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「As of the filing date, the company is not aware of any information indicating that this risk is expected to materialize.」
The company continues to disclose the gains and losses on sales of land used in its business and the risk of impairment due to declining profitability, and states that it has not identified any information indicating that the risk would materialize as of the filing date. Impairment losses for the fiscal year were zero. - FY2023MaterialisedAnnual report
「As the decline in profitability and market value of the above land was significant and recovery of the investment was expected to be difficult, the company reduced its carrying amount to the appraised value of the real estate and recognized an impairment loss of ¥27 million as an extraordinary loss.」
The company recognized an impairment loss of ¥27 million on land used in its business in Morioka, Iwate Prefecture, due to declining profitability and falling market value. - FY2022RestatedAnnual report
「As a measure to address this risk, when acquiring land for business use, the company carefully verifies the accuracy of the basis for its sales forecasts, including when it is not overly dependent on specific parking demand and when the acquisition price is particularly high relative to reference prices such as official land prices.」
The company continues to disclose the risk of declining profitability and impairment of land used in its business, and identifies avoiding excessive dependence on parking demand and verifying the basis for sales forecasts as countermeasures. - FY2020RestatedAnnual report
「As of the filing date, the company is not aware of any information indicating that this risk is expected to materialize.」
The company continues to disclose the gains and losses on sales of land used in its business and the risk of impairment due to declining profitability. It states that it has not identified any information indicating an expected decline in the profitability of property, plant and equipment. - FY2020-Q1MitigatedAnnual report
「In Mito City, the sale of part of the site of an owned parking facility where the number of parking spaces was excessive reduced the number of spaces by 75.」
The sale was completed for part of the site of an owned parking facility in Mito City with excess parking capacity, for which the decision to sell and recognition of an impairment loss had been reported in the previous fiscal year. - FY2019MaterialisedAnnual report
「In Mito City, the company decided to sell part of the site of an owned parking facility where the number of parking spaces was excessive, and recognized an impairment loss of ¥94 million based on the contract amount.」
The company decided to sell part of the site of an owned parking facility in Mito City where the number of parking spaces was excessive, and recognized an impairment loss of ¥94 million. - FY2019-Q3Sale of an aging owned parking facilityAnnual report
「Meanwhile, because the building had become aged, the Company sold an owned parking facility in Sapporo City comprising 1 facility with 142 spaces and a 44/100 interest in the building and land. In connection with the sale of the owned parking facility in Sapporo City, as described in the notices dated 23 April 2019, titled “Notice Regarding the Transfer of Fixed Assets and Recognition of Extraordinary Gain,” and 9 May 2019, titled “(Change to Previously Disclosed Information) Notice Regarding the Transfer of Fixed Assets and Recognition of Extraordinary Gain,” the Company plans to recognize an approximately ¥1,490 million gain on the sale of fixed assets as an extraordinary gain in the fourth quarter of the current fiscal year, when the sale of the land (56/100 interest) is completed.」
The Company sold the owned parking facility in Sapporo City because the building had become aged, and plans to recognize an approximately ¥1,490 million gain on the sale of fixed assets after completing the sale of the remaining interest. - FY2018RestatedAnnual report
「However, if the Company sells land or other assets that become unnecessary for its business due to a decline in sales or a major change in its operating strategy, this could affect its business performance depending on trends in land prices. In addition, if a decline in the profitability of property, plant and equipment makes recovery of the investment unlikely, the carrying amount must be reduced under certain conditions to reflect its recoverability. Accordingly, future trends in land prices and the Company's operating performance could affect its financial position and business performance.」
The Company continues to disclose as risks the gains or losses on sales of land used in the business and the possibility of impairment due to declining profitability. - FY2018-Q1MitigatedAnnual report
「Meanwhile, as part of a portfolio review, the Company sold owned parking facilities comprising 1 facility with 13 spaces in Mito City and 1 facility with 84 spaces in Narita City.」
The Company sold land, including the owned parking facility in Narita City that had been scheduled for transfer due to expected declining profitability in the previous fiscal year, advancing its response to profitability risks associated with the owned assets. - FY2017MaterialisedAnnual report
「Because the profitability of the parking facility is expected to decline in the future, it was decided that the property would be transferred.」
The Narita No. 2 parking facility was expected to become less profitable and was transferred on 31 October 2017. The declining profitability and sale risk of land used in the business materialized in the disposal of a specific asset. - FY2016MaterialisedAnnual report
「As the decision to sell the above land was made during the fiscal year, its carrying amount was reduced to its recoverable amount, and an impairment loss of ¥51 million was recognized as an extraordinary loss.」
The disclosure describes the risk of declining profitability and recoverability of property, plant and equipment due to land prices and operating conditions, and reports an impairment loss of ¥51 million for land in Niigata City scheduled for sale during the current fiscal year.