Risk of impairment losses on fixed assets due to deteriorating market conditions
First written in FY2019. 4 of 5 entries say "Materialised", first in FY2021. Latest entry: FY2025.
Nichias moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 19 of 48 companies on the "Worse" side.
13 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「During the fiscal year, because recovery of the investment was no longer expected due to declining profitability, the carrying amount of the asset group was reduced to its recoverable amount. The reduction of ¥418 million was recorded as an impairment loss under extraordinary losses.」
A ¥418 million impairment loss was recognized on the assets used to manufacture floor products at the Yuki Plant due to declining profitability. - FY2024MaterialisedAnnual report
「During the fiscal year, the carrying amount of the operating assets of ニチアスセラテック㈱ was reduced to the recoverable amount because recovery of the investment was no longer expected following a change in the business plan. The reduction of ¥94 million was recorded as an impairment loss under extraordinary losses.」
The fixed-asset impairment risk newly materialized as a ¥94 million impairment loss at ニチアスセラテック following a change in its business plan. - FY2023MaterialisedAnnual report
「During the fiscal year, because recovery of the investment was no longer expected due to declining profitability, the carrying amount of the asset group was reduced to its recoverable amount. The reduction of ¥679 million was recorded as an impairment loss under extraordinary losses.」
The fixed-asset impairment risk materialized as a ¥679 million impairment loss at APJ due to declining profitability. A ¥1,038 million impairment loss was also recognized for Kimitsu Rock Wool following the suspension of production. - FY2021MaterialisedAnnual report
「During the fiscal year, the carrying amounts of operating assets for which recovery of the investment was no longer expected due to declining profitability, and idle assets with no expected future use, were reduced to their recoverable amounts. The reductions were recorded as impairment losses under extraordinary losses. The breakdown was ¥2,919 million for operating assets and ¥595 million for idle assets, for a total of ¥3,515 million.」
A total of ¥3,515 million in impairment losses on property, plant and equipment was recognized for overseas rock wool insulation manufacturing facilities and idle assets due to declining profitability and the loss of expected future use. At ㈱ＡＰＪ, impairment indicators were identified because operating losses continued, but no impairment loss was deemed necessary for the current fiscal year. - FY2019First statedAnnual report
「Our Group records impairment losses in a timely manner for fixed assets requiring impairment testing, but additional impairment losses may be required due to future deterioration in market conditions or other factors.」
The possibility that future deterioration in market conditions or other factors may require additional impairment of fixed assets is disclosed as an accounting-estimate risk.