Impairment Risk Associated with Software Investments
First written in FY2023. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「In providing our matching platform, we capitalize primarily internally developed software as fixed assets. If undiscounted future cash flows generated by these assets fall below the investment amount due to declining profitability or other factors, we carefully assess their recoverability and recognize an appropriate impairment loss as necessary.」
The company continues its policy of assessing the impairment risk on fixed assets associated with increased investment in internally developed software and testing their recoverability. - FY2023First statedAnnual report
「We may make aggressive investments going forward to expand our business scope and improve convenience. However, if investment recovery is not expected due to future changes in the operating environment or other factors, recording an impairment loss could affect our operating results and financial position.」
The company has, for the first time, disclosed as a standalone item the impairment risk associated with aggressive investment in internally developed software and other assets if future cash flows fall below the investment amount.