Risks associated with the collection of receivables arising from the expansion of investment banking and related businesses
First written in FY2017. 2 of 4 entries say "Mitigated", first in FY2019. Latest entry: FY2024.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「Systems have been established for credit management, and sufficient attention is being paid to the preservation of receivables. Measures include conducting credit screening before transactions and, depending on a customer’s financial condition, receiving part of the fee as an upfront payment when a transaction begins.」
As specific measures to address the risk of uncollectible trade receivables, pre-transaction screening and the receipt of upfront payments have been explicitly added to the existing credit management and receivables preservation measures. - FY2022RestatedAnnual report
「Although systems have been established for credit management and sufficient attention is being paid to the preservation of receivables, as these operations expand, if a particular counterparty, such as an unlisted company or an owner-managed business, defaults on its obligations due to bankruptcy or another event, the Group may be unable to collect its trade receivables, which could affect its financial position and operating results.」
The risk of uncollectible trade receivables associated with the expansion of investment banking and other operations, and the response through credit management and receivables preservation, have been reaffirmed. - FY2019MitigatedAnnual report
「Although systems have been established for credit management and sufficient attention is being paid to the preservation of receivables, as these operations expand, if a particular counterparty, such as an unlisted company or an owner-managed business, defaults on its obligations due to bankruptcy or another event, the Group may be unable to collect its trade receivables, which could affect its operating results and financial position.」
The collection risk associated with the expansion of investment banking and other operations continues to be recognized, while the establishment of a credit management system and the focus on preserving receivables have been explicitly stated. - FY2017First statedAnnual report
「As these operations expand, if a particular counterparty, such as an unlisted company or an owner-managed business, defaults on its obligations due to bankruptcy or another event, the Group may be unable to collect its trade receivables, which could affect its operating results and financial position.」
The risk of being unable to collect trade receivables from unlisted companies, owner-managed businesses and other counterparties has been newly disclosed in connection with the expansion of investment banking and other operations. Although the Company recorded ¥71.280 million in provision for doubtful accounts expense during the fiscal year, the risk itself is stated as a possibility.