Goodwill Impairment Risk Associated with the Raicol Acquisition
First written in FY2024. 3 of 8 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Regarding geopolitical risks in the Middle East, including Israel, after comprehensively considering the impact of the situation on the Group's business and performance, during the fiscal year ended February 2026 we transferred all shares of Raicol Crystals Ltd., which has a site in Israel, along with loan receivables, and excluded the company from the scope of consolidation.」
The Company transferred all shares of Raicol and its loan receivables and removed the company from the scope of consolidation, thereby taking steps to reduce its exposure to the risk of goodwill impairment related to Raicol. - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」
The Company stated that there had been no new occurrence or material change regarding the risk of goodwill impairment associated with the Raicol acquisition. - FY2025MaterialisedAnnual report
「Goodwill and other assets arising from the acquisition of shares in Ricol Crystals Ltd., a consolidated subsidiary, have performed below the business plan projected at the time of acquisition. As it was determined to be difficult to achieve the originally projected business plan, the carrying amount of these assets was reduced to their recoverable amount, and the resulting decrease of ¥2,723.138 million was recorded as an impairment loss.」
A goodwill impairment loss of ¥2,723.138 million was actually recognized in connection with the acquisition of Raicol and other items because performance fell below the business plan prepared at the time of the acquisition, bringing the goodwill impairment risk to fruition. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」
The Company stated that there had been no new occurrence or material change regarding the risk of goodwill impairment associated with the Raicol acquisition. - FY2025-Q1RestatedAnnual report
「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The Company stated that there had been no new occurrence or material change regarding the risk of goodwill impairment associated with the Raicol acquisition. - FY2024First statedAnnual report
「Goodwill was recognized in connection with this business acquisition. If the acquired business underperforms the plan prepared at the time of the acquisition, causing a significant decline in its excess earning power, the recognition of a goodwill impairment loss could affect the Group's operating results.」
In connection with the acquisition of Raicol, the Company recognized ¥1,641 million in goodwill and disclosed for the first time, as a separate item, the risk of goodwill impairment if post-acquisition performance falls below plan. Measures include deliberation by the Board of Directors, post-acquisition strategy meetings and participation in Raicol's management.