Risk of Loan Uncollectibility for Affiliates and Other Related Entities
First written in FY2022. 1 of 3 entries say "Worsened", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2026: 11 of 17 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Long-term loans receivable ¥1,909.197 million ¥5,224.793 million Allowance for doubtful accounts (non-current) △¥581.867 million △¥2,752.310 million Long-term loans receivable ¥4,791.624 million Allowance for doubtful accounts (non-current) △¥1,988.010 million」
Long-term loans receivable to affiliates and other related parties decreased from ¥5,224.793 million at the end of the previous fiscal year to ¥4,791.624 million, while the non-current allowance for doubtful accounts decreased from ¥2,752.310 million to ¥1,988.010 million. - FY2024WorsenedAnnual report
「Long-term loans receivable ¥1,909.197 million ¥5,224.793 million Allowance for doubtful accounts (non-current) △¥581.867 million △¥2,752.310 million」
Long-term loans receivable increased to ¥5,224.793 million, while the non-current allowance for doubtful accounts also rose to ¥2,752.310 million, indicating heightened recovery risk for loans to affiliates and other related parties. - FY2022First statedAnnual report
「Short-term loans receivable ¥1,514.945 million ¥2,149.238 million Allowance for doubtful accounts (current) △¥325.609 million △¥1,120.130 million Long-term loans receivable ¥1,909.197 million ¥1,389.212 million Allowance for doubtful accounts (non-current) △¥581.867 million △¥594.238 million These estimates may be affected by deterioration in the financial position of the counterparties and other factors. If a material discrepancy arises between the estimated and actual uncollectible amounts, additional provisions for doubtful accounts may be recorded, or bad debt losses exceeding the allowance for doubtful accounts may arise, potentially having a material impact on the financial statements for the following fiscal year.」
The recoverability of loans receivable is identified as a critical accounting estimate, indicating the possibility of additional provisions or bad debt losses due to deterioration in the counterparties’ financial positions.