Risk of goodwill impairment due to failure to achieve acquisition synergies
First written in FY2020. 2 of 4 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
Miura moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2023: 34 of 94 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「For the fiscal year, the recoverable amount of the CBE ENTERPRISES,INC. (equipment sales) group exceeded its carrying amount by ¥1,423 million. If the discount rate alone were changed, our estimate indicates that a 0.2% increase in the discount rate would cause the recoverable amount to equal the carrying amount.」
For goodwill related to the Cleaver-Brooks acquisition, the company disclosed a ¥1,423 million headroom in the recoverable amount and sensitivity showing that a 0.2% increase in the discount rate would bring it into line with the carrying amount. The risks of failure to achieve acquisition synergies and impairment were quantified specifically. - FY2021RestatedAnnual report
「There is a risk of impairment if the impact of the COVID-19 pandemic causes revenue to fall substantially below the levels projected in the medium-term plan. However, we have determined that a material impairment is unlikely if the key assumptions used in the impairment assessment for the fiscal year change within a reasonably foreseeable range. In addition, for the fiscal year, we estimate that an impairment loss could arise if the discount rate were to increase by 1.68%.」
For ¥6,037 million in goodwill in the domestic laundry business, the company disclosed the five-year medium-term plan, a WACC of 8.55% and the possibility of impairment if the discount rate rises by 1.68%. No material goodwill impairment was recognized. - FY2021-Q2WorsenedAnnual report
「Our Group assumes that the difficult business environment resulting from the COVID-19 pandemic will continue. There are also many uncertainties, including when the pandemic will subside and the process of economic recovery in each country thereafter, and if capital investment remains constrained for an extended period, impairment losses on non-current assets may arise.」
The description of impairment risk if the pandemic-related restraint on capital investment continues for an extended period was expanded from goodwill in the domestic laundry business to non-current assets generally. - FY2020First statedAnnual report
「There is a risk of impairment if the impact of the COVID-19 pandemic causes revenue to fall substantially below the levels projected in the medium-term plan. However, we have determined that a material impairment is unlikely if the key assumptions used in the impairment assessment for the fiscal year change within a reasonably foreseeable range. In addition, for the fiscal year, we estimate that an impairment loss could arise if the discount rate were to increase by 0.49%.」
For goodwill related to the domestic laundry business acquired from Ainax Inamoto, the company disclosed quantitatively that failure to achieve the revenue plan due to COVID-19 and a 0.49% increase in the discount rate could trigger impairment.