Risk of Inventory Write-Downs and Fixed Asset Impairment Due to Market Changes and New Technologies
First written in FY2021. 3 of 7 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Iwabuchi moved to the "Worse" side of this theme in 2023.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory write-downs are included in cost of sales. Previous fiscal year: ¥125.422 million; Current fiscal year: ¥128.317 million」
Inventory write-downs increased from ¥125.422 million in the previous fiscal year to ¥128.317 million, further expanding the realized impact of inventory write-downs due to the market environment and changes in demand. - 2026-05-15MaterialisedRevisions to earnings forecasts
「Impairment loss — 54,002」
An impairment loss of ¥54.002 million was recorded in the consolidated income statement for the current consolidated fiscal year, confirming that impairment occurred. - FY2025WorsenedAnnual report
「Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory write-downs are included in cost of sales. Previous fiscal year: ¥102.266 million; Current fiscal year: ¥125.422 million」
Inventory write-downs increased from ¥102.266 million in the previous fiscal year to ¥125.422 million, and the impact of write-down risk due to the market environment and changes in demand has expanded. - FY2024WorsenedAnnual report
「*2. Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory write-downs are included in cost of sales. Previous fiscal year: ¥80.958 million; Current fiscal year: ¥102.266 million」
Inventory write-downs increased from ¥80.958 million in the previous fiscal year to ¥102.266 million, indicating that the realized impact of write-down risk due to the market environment and changes in demand has expanded. - FY2023MaterialisedAnnual report
「As a result of this change, cost of sales for the fiscal year increased by ¥80.958 million compared with the previous method, while operating profit, ordinary profit, and profit before income taxes decreased by the same amount.」
Against the backdrop of higher raw material prices and changes in the demand environment, the company changed its inventory valuation method, resulting in an actual ¥80.958 million increase in cost of sales equivalent to an inventory write-down and a corresponding decline in profit. - FY2022RestatedAnnual report
「We estimate declines in profitability based on sales plans, but these estimates involve uncertainty because the demand forecasts include capital investment plans and cost reduction plans for related industries. If the assumptions underlying the demand forecasts change in the future and the sales plans need to be revised, the carrying amounts of merchandise and products may be written down, potentially increasing cost of sales.」
The company has continued to describe changes in the market environment, capital investment plans, and cost reduction plans as key accounting estimates that could result in write-downs of merchandise and products. - FY2021First statedAnnual report
「Our Group manages inventories and makes capital investments appropriately in line with demand trends by strengthening coordination with customers, gathering information, and sharing information. However, if changes occur in the market environment, competitive conditions, or needs, or if existing products become obsolete due to new technologies or products, inventory write-downs or impairment losses on operating fixed assets could have a material impact on operating results and financial condition.」
The company separately describes the risk that the market environment, competition, needs, and obsolescence of existing products due to new technologies and products could result in inventory write-downs or impairment losses on fixed assets.