Goodwill Impairment Risk Associated With M&A
First written in FY2026-H1. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2023: 35 of 95 companies on the "Worse" side.
28 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Amount of goodwill ¥472,008 thousand (3) Amortization method and amortization period for goodwill Straight-line amortization over 7 years」
Goodwill of ¥472.008 million was recognized following the consolidation of キャストリコ as a subsidiary, and the impairment risk in the event of underperformance by the acquired business remains. - FY2026-H1First statedAnnual report
「The Company has acquired shares through corporate acquisitions and recognized goodwill. If the acquired company’s performance falls below expectations at the time of acquisition due to changes in the business environment, competitive conditions or other factors, and its initially anticipated excess earning power declines, an impairment loss on the goodwill may arise, potentially affecting the Group’s operating results and financial position.」
Given that goodwill of ¥472.008 million was recognized following the consolidation of キャストリコ as a subsidiary, the risk of goodwill impairment resulting from underperformance by the acquired business was newly disclosed.