Valuation risk based on expected future orders for white-box software
First written in FY2023. 2 of 4 entries say "Worsened", first in FY2024. Latest entry: FY2026-H1.
Access moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Because the originally expected revenue could no longer be anticipated, the carrying amount was reduced to its recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses.」
The asset valuation risk associated with dependence on expected future orders and revenue for software for white-box products and other software materialised further as a ¥121.35 million impairment loss in the Network Business. - FY2025MaterialisedAnnual report
「Inappropriate manipulation of the classifications of aggregated data used as the basis for calculating the amount of software capitalised, and inappropriate alteration of transaction supporting documents used as the basis for the timing of software recognition, were carried out. As a result, it was determined retrospectively that the amount of software assets recorded by the US subsidiary had been overstated.」
Regarding valuation risk for software for white-box products based on expected future orders and sales revenue, an actual overstatement of software assets was identified, resulting in the correction of prior-year financial statements. - FY2024WorsenedAnnual report
「For software for white-box products, which belongs to the Network Business segment, the company incorporates as a key assumption an increase in revenue from expected future new orders, based on internal and external information including the status of business discussions with customers and the size and growth forecasts of the white-box market obtained from external information sources.」
The amount recorded for software for white-box products increased from ¥3,787 million in the previous fiscal year to ¥4,753 million. The asset subject to valuation has expanded in scale and is highly dependent on future new orders, project size and the timing of recognition. - FY2023First statedAnnual report
「For software for white-box products, which belongs to the Network Business segment, the company incorporates as a key assumption an increase in revenue from expected future new orders, based on internal and external information including the status of business discussions with customers and the size and growth forecasts of the white-box market obtained from external information sources.」
In valuing software in the Network Business, customer discussions, market size and growth forecasts, and increased revenue from expected new orders were identified as key assumptions. The company disclosed that if the assumptions differ from actual results, the difference could have a material impact on the financial statements for the following fiscal year. Software recorded in the Network Business amounted to ¥3,787 million.