Impairment Estimation Risk for Property, Plant and Equipment in the Valve Business
First written in FY2022. 2 of 3 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2020: 5 of 16 companies on the "Worse" side.
26 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「In the valve business, the price of brass, a key raw material, has remained high, reducing profitability. In addition, intensifying competition resulting from declining medium- to long-term demand, together with rising labor and logistics costs, is expected to continue, and the business environment is expected to become even more challenging.」
The impairment risk for tangible fixed assets arising from higher material costs, declining medium- to long-term demand, and rising labor and logistics costs continues to be assessed, but based on the plan for the following fiscal year, the Company has determined that there are no indications of impairment. - FY2023RestatedAnnual report
「Although these adverse changes in the business environment are expected, operating income from operations at each business location is not expected to be negative under the business plan for the following consolidated fiscal year. Accordingly, the Company has determined that the conditions do not constitute a significant deterioration in the business environment for any asset group and that there were no indications of impairment in the current consolidated fiscal year.」
The impairment risk arising from higher material costs, declining medium- to long-term demand, and rising labor and logistics costs continues to be assessed, but based on the plan for the following fiscal year, the Company has determined that there are no indications of impairment. - FY2022First statedAnnual report
「In the valve business, prices for brass, a key raw material, have remained high, and profitability has declined significantly. In addition, intensifying competition associated with a medium- to long-term decline in demand, along with rising labor and logistics costs, is expected to continue, and the business environment is expected to become even more challenging. Although deterioration in the business environment is anticipated, the business plans for the next consolidated fiscal year project that the profit or loss generated by operating activities at each business site will not be negative. Accordingly, the company determined that the significant deterioration in the business environment criterion was not met for the current consolidated fiscal year and that there were no indications of impairment for the respective asset groups.」
The impairment risk associated with ¥3,230.446 million in tangible fixed assets in the valve business is being assessed due to higher material costs, declining medium- to long-term demand, and rising labor and logistics costs. However, as operating income at each business location is not expected to be negative under the plan for the following fiscal year, the Company has determined that there were no indications of impairment in the current fiscal year.