Risk of Counterparty Credit Deterioration and Bad Debt
First written in FY2024. 7 of 13 entries say "Mitigated", first in FY2025. Latest entry: 2026-10-14.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2027-H1MitigatedAnnual report
「With respect to the allowance for doubtful accounts recognized at the end of the previous consolidated fiscal year for certain customers, the Company reviewed collectability based on the customers' operating and financial conditions. As a result, a reversal of ¥100.123 million in the provision for doubtful accounts was recorded in selling, general and administrative expenses.」
The full ¥100.123 million provision for doubtful accounts recorded in the previous consolidated fiscal year was reversed following a review of collectability. - FY2026MaterialisedAnnual report
「Following a careful assessment of the collectability of receivables from certain customers based on their operating and financial conditions, we recognized ¥100.123 million as an expense for provisions for doubtful accounts under selling, general and administrative expenses. As a result, operating profit, ordinary profit and net income attributable to owners of the parent declined significantly.」
After assessing collectability based on customers' operating and financial conditions, the company actually recognized ¥100.123 million as an expense for provisions for doubtful accounts, reducing profit. - FY2025MitigatedAnnual report
「For our major customers, we review the collection status of receivables at monthly management committee meetings and endeavor to manage them so as to prevent significant bad-debt losses from arising.」
In response to customer credit concerns and bad-debt risk, the company disclosed a process for reviewing the collection status of receivables from major customers at monthly management committee meetings. - FY2024First statedAnnual report
「However, depending on economic conditions and other factors, unexpected bad-debt risk may emerge as a result of credit concerns involving customers, potentially resulting in bad-debt losses or a need to make additional provisions for doubtful accounts, which could in turn affect the operating results, financial position and other aspects of the Group.」
Bad-debt losses and additional provisions for doubtful accounts resulting from customer credit concerns were disclosed independently as a major risk for the first time. The disclosure also describes responses including setting credit limits, continuously monitoring credit conditions and taking measures to protect receivables.