Risk of non-performing receivables arising from deterioration in counterparties’ business performance
First written in FY2020. 3 of 8 entries say "Mitigated", first in FY2023. Latest entry: FY2025.
The whole theme swung hardest in 2026: 18 of 64 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「Change in allowance for doubtful accounts (△ indicates a decrease) △ 13」
The allowance for doubtful accounts decreased by ¥13 thousand in the current fiscal year, and no increase in the provision for bad debt risk has been identified since the previous fiscal year. - FY2024MitigatedAnnual report
「Change in allowance for doubtful accounts (△ indicates a decrease) 18,131 △10」
The allowance for doubtful accounts changed from an increase in the previous consolidated fiscal year to a decrease of ¥10 thousand in the current consolidated fiscal year. - FY2023MitigatedAnnual report
「Change in allowance for doubtful accounts (△ indicates a decrease) 18,131 △10」
The allowance for doubtful accounts changed from an increase in the previous consolidated fiscal year to a decrease of ¥10 thousand in the current consolidated fiscal year. No provision for doubtful accounts was recognized in selling, general and administrative expenses in the current fiscal year. - FY2022-Q3WorsenedAnnual report
「Allowance for doubtful accounts △ 8,127 △ 24,568」
The allowance for doubtful accounts increased from ¥8,127 thousand at the end of the previous consolidated fiscal year to ¥24,568 thousand. The main text does not provide details of the reason for the increase. - FY2022-Q2WorsenedAnnual report
「As sales transactions had been processed in the previous fiscal year, only rental income was recorded, resulting in revenue of ¥4 million (¥107 million in the same quarter of the previous year, down 96.1%). Segment loss (operating loss), reflecting the recognition of an allowance for doubtful accounts, was ¥10 million (segment profit of ¥10 million in the same quarter of the previous year). As only franchise royalties were recorded, revenue was ¥1 million (¥3 million in the same quarter of the previous year, down 56.6%), and segment loss (operating loss), reflecting the recognition of an allowance for doubtful accounts, was ¥14 million (segment loss of ¥10 million in the same quarter of the previous year).」
The recognition of an allowance for doubtful accounts was reported in both the real estate and education businesses. The real estate business moved from profit in the same period of the previous year to a loss of ¥10 million, while the education business's loss widened from ¥10 million to ¥14 million. - FY2022-Q1MaterialisedAnnual report
「Segment loss (operating loss), reflecting the recognition of an allowance for doubtful accounts, was ¥6 million (segment profit of ¥0.2 million in the same quarter of the previous year).」
An allowance for doubtful accounts was recognized in the real estate business, resulting in a segment loss of ¥6 million. The risk of bad debts associated with deteriorating customer credit quality and other factors has materialized through the recognition of the allowance. - FY2021RestatedAnnual report
「When commencing transactions with customers, the Group manages credit by collecting industry information and investigating their creditworthiness, operating results, asset composition and other matters through credit research companies, and, where necessary, obtaining collateral or guarantees to mitigate the risk of bad debts.」
Credit investigations, credit management, and measures to mitigate the risk of bad debts through collateral and guarantees continue to be described for the full fiscal year. - FY2020First statedAnnual report
「However, if an unexpected risk of bad debts materializes due to deteriorating customer performance or other factors and the Company incurs a loss, this could affect the Company's operating results and financial position.」
The risk of bad debts and non-performing receivables arising from deteriorating customer performance was described as a separate item for the first time. Credit investigations and risk mitigation through collateral and guarantees were also described.