Risk of Fixed Asset Impairment Due to Deterioration in Facility Performance
First written in FY2016. 5 of 18 entries say "Worsened", first in FY2018. Latest entry: FY2025.
Global Kids Company Corp. moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 5 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Use Facilities (17 facilities) Buildings and structures Other tangible fixed assets Yokohama, Kanagawa, and other locations 605」
Facility impairment expanded from 9 facilities and ¥201 million in the previous fiscal year to 17 facilities and ¥605 million, indicating a deterioration in impairment risk associated with deteriorating facility performance. - FY2024MitigatedAnnual report
「For the consolidated fiscal year (from 1 October 2023 to 30 September 2024) Use: Facilities (9 facilities) Impairment loss: ¥201 million」
Facility impairment occurred again during the fiscal year, but the number of facilities declined from 16 in the previous fiscal year to 9, and the amount decreased from ¥608 million to ¥201 million. - FY2023RestatedAnnual report
「For facilities whose operating results had deteriorated, the carrying amount was reduced to the recoverable amount, and an impairment loss was recognized as an extraordinary loss (¥583 million for buildings and structures and ¥25 million for other tangible fixed assets).」
The annual report confirms that impairment losses of ¥608 million were recognized for 16 facilities in FY2023. The scope and amount decreased from 23 facilities and ¥1,677 million in the previous year. - FY2023-Q3MitigatedAnnual report
「For facilities whose operating results had deteriorated, the carrying amount was reduced to the recoverable amount, and an impairment loss was recognized as an extraordinary loss (¥583 million for buildings and structures and ¥25 million for other tangible fixed assets).」
Facility impairment occurred again this quarter, but the scope contracted from 23 facilities and ¥1,677 million in the same period of the previous year to 16 facilities and ¥608 million. - FY2023-Q1MaterialisedAnnual report
「The number decreased due to the transfer of the company-led childcare business and the closure of unprofitable facilities, both carried out in the previous consolidated fiscal year.」
Unprofitable facilities were closed, and the business response to deteriorating facility performance was disclosed as a decline in the number of operating facilities. - FY2022WorsenedAnnual report
「The Group recognized impairment losses on the following asset group. Use Facilities (23 facilities) Impairment loss 1,677」
The impairment scope expanded from 17 facilities and ¥258 million in the previous year to 23 facilities and ¥1,677 million, indicating that impairment risk associated with deteriorating facility performance has further materialized. - FY2022-Q3WorsenedAnnual report
「Use Facilities (23 facilities) Buildings and structures Other tangible fixed assets Koto-ku, Tokyo, and other locations 1,677」
For facilities whose operating results had deteriorated, the impairment scope expanded from 17 facilities and ¥258 million in the same period of the previous year to 23 facilities and ¥1,677 million. - FY2022-Q2Updated the COVID-19 assumption date used in impairment estimatesAnnual report
「Regarding the impact of COVID-19, the Company has made accounting estimates, including the recoverability of future cash flows in the impairment testing of fixed assets, based on the assumption that no large-scale facility closures would occur due to a resurgence of infections and that facilities would operate normally in April 2022, while continuing to implement COVID-19 countermeasures.」
For the fixed-asset impairment estimate, the Company assumed that normal operations would resume in April 2022 while COVID-19 countermeasures continued. - FY2021RestatedAnnual report
「Use: Facilities (17 facilities) Impairment loss: ¥258 million」
The annual report also discloses that an impairment loss of ¥258 million was recognized for 17 facilities whose operating results had deteriorated. - FY2021-Q3WorsenedAnnual report
「For the nine-month period ended 30 June 2021 (from 1 October 2020 to 30 June 2021) The Group recognized impairment losses on the following asset group. Use: Facilities (17 facilities) Impairment loss: ¥258 million」
An impairment loss of ¥258 million was recognized for 17 facilities whose operating results had deteriorated, up from 3 facilities and ¥95 million in the same period of the previous year, in both the number of facilities and the amount. - FY2021-Q2RestatedAnnual report
「Regarding the impact of COVID-19, the Company has made accounting estimates, including the recoverability of future cash flows in the impairment testing of fixed assets, based on the assumption that no large-scale facility closures would occur due to a resurgence of infections and that facilities would operate normally in April 2021, while continuing to implement COVID-19 countermeasures.」
The Company continues to estimate fixed-asset impairment based on the assumption that no large-scale facility closures would occur and that normal operations would resume in April 2021. - FY2021-Q1Disclosed impairment estimates based on COVID-19 assumptionsAnnual report
「Regarding the impact of COVID-19, the Company has made accounting estimates, including the recoverability of future cash flows in the impairment testing of fixed assets, based on the assumption that no large-scale facility closures would occur due to a resurgence of infections and that facilities would operate normally in April 2021, while continuing to implement COVID-19 countermeasures.」
The recoverability of future cash flows for fixed-asset impairment was estimated based on the assumption that no large-scale facility closures would occur due to a resurgence of infections and that normal operations would resume in April 2021. - FY2020-Q3MaterialisedAnnual report
「For facilities whose operating results had deteriorated, the carrying amount was reduced to the recoverable amount, and an impairment loss was recognized as an extraordinary loss (¥89 million for buildings and structures and ¥6 million for other tangible fixed assets). The recoverable amount was measured based on value in use, but was set at zero because no future cash flows were expected.」
An impairment loss of ¥95 million related to facilities was recognized for 3 facilities whose operating results had deteriorated. The impairment risk associated with deteriorating facility performance materialized during the period. - FY2019MitigatedAnnual report
「The ¥1,195 million decrease in extraordinary losses was attributable to the absence of impairment losses on facilities.」
No impairment losses were recorded on facilities in the current fiscal year, compared with ¥1,268 million for 15 facilities in the previous fiscal year, reducing impairment associated with deteriorating facility performance. However, impairment losses of ¥62 million were recorded on head-office software. - FY2018WorsenedAnnual report
「For facilities with deteriorating operating results, the carrying amounts were reduced to the recoverable amounts. In addition, existing certified facilities were closed when certified facilities were transitioned to authorized facilities involving relocation, and impairment losses were recorded as extraordinary losses, comprising ¥1,245 million for buildings and structures and ¥22 million for other property, plant and equipment.」
The scope of impairment losses expanded from 3 facilities totaling ¥228 million in the previous fiscal year to 15 facilities totaling ¥1,268 million in the current fiscal year. Existing facilities were also closed in connection with the transition to authorized facilities. - FY2018-Q3MaterialisedAnnual report
「For facilities with deteriorating operating income, we reduced their book value to recoverable amount. In addition, when certified facilities were converted to licensed facilities in connection with relocations, the existing certified facilities were closed, and impairment losses were recorded as extraordinary losses, comprising ¥109 million for buildings and structures and ¥1 million for other tangible fixed assets.」
Impairment losses of ¥111 million were recorded for 3 facilities during the cumulative third-quarter period. The losses included impairment associated with the closure of existing facilities. - FY2017-Q3MaterialisedAnnual report
「For facilities with deteriorating operating results, the carrying amount was reduced to the recoverable amount, and impairment losses were recorded as extraordinary losses, comprising ¥219 million for buildings and ¥9 million for other property, plant and equipment. The recoverable amount was measured based on value in use, but was set at zero because no future cash flows were expected.」
Actual impairment losses totaling ¥228 million were recorded for 3 facilities with deteriorating operating results. The recoverable amount was set at zero because no future cash flows were expected. - FY2016First statedAnnual report
「If the performance of an operating facility deteriorates significantly with no prospect of improvement, or if there is no prospect of improvement after a certain period following its opening, impairment of property, plant and equipment may be required, potentially affecting the Group's performance.」
The company describes the impairment risk triggered by a significant deterioration in facility performance or the absence of improvement after a new facility opens.