Risk of Fixed-Asset Impairment Due to Changes in Business Plans and Market Conditions
First written in FY2020. 2 of 7 entries say "Materialised", first in FY2022. Latest entry: FY2026.
Toyo Denki Seizo K.K.(Toyo Electric Mfg.Co.,Ltd.) moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 5 of 16 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Fiscal year under review (from 1 June 2025 to 31 May 2026) Not applicable.」
Although an impairment loss of ¥38 million was recognized on Izu-Kogen-so in the previous fiscal year, no impairment loss was recognized during the fiscal year under review. - FY2025MaterialisedAnnual report
「The Group has recognized impairment losses for the following asset groups.」
Rather than industrial business assets, an impairment loss of ¥38 million was recognized on Izu-Kogen-so, for which a policy of sale had been decided. The risk of fixed-asset impairment has materialized in another asset. - FY2024RestatedAnnual report
「During the fiscal year under review, certain asset groups related to the industrial business recorded an operating loss, mainly due to the impact of component shortages on sales, and impairment indicators were identified. However, no impairment loss was recognized because the total undiscounted future cash flows expected from these asset groups exceeded their carrying amounts.」
Impairment indicators for industrial business assets continued due to the impact of component shortages on sales, but no impairment loss was recognized for the fiscal year because future cash flows exceeded the carrying amount. - FY2023RestatedAnnual report
「During the fiscal year under review, certain asset groups related to the industrial business recorded an operating loss, mainly due to the impact of prolonged difficulty in procuring components on production processes and the rapid shift toward electrification in testing equipment for automotive development, and impairment indicators were identified. However, no impairment loss was recognized because the total undiscounted future cash flows expected from these asset groups exceeded their carrying amounts.」
Impairment indicators for industrial business assets continued, but no impairment loss was recognized for the fiscal year because future cash flows exceeded the carrying amount. - FY2022MaterialisedAnnual report
「At Shiga-Ryuoh Works, which is responsible for production in the industrial business, the Company determined that a return to the originally projected level of earnings could not be expected due to major changes in the business environment, including the prolonged impact of COVID-19. Following a careful review of the recoverability of business assets, including production equipment, the Company recognized an impairment loss.」
The previously identified impairment risk and indicators materialized, and an impairment loss of ¥2,256 million was recognized on the industrial business assets of Shiga-Ryuoh Works. - FY2021WorsenedAnnual report
「During the fiscal year under review, certain assets or asset groups related to the industrial business recorded an operating loss, mainly because sales projects were pushed back due to the impact of COVID-19, and impairment indicators were identified. However, no impairment loss was recognized because the total undiscounted future cash flows expected from these assets or asset groups exceeded their carrying amounts.」
Impairment indicators were identified in the industrial business due to the postponement of sales projects and other factors, but no impairment loss was recognized because future cash flows exceeded the carrying amount. - FY2020First statedAnnual report
「If changes in business plans or market conditions result in a decline in the conditions or assumptions underlying the estimates, impairment may become necessary.」
It newly identifies the risk that impairment indicators for fixed assets, estimated future cash flows, and estimated recoverable amounts may be affected by changes in business plans or market conditions.