Pathology Business Deviation from Business Plan and Goodwill Impairment
First written in FY2024-Q2. 3 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 17 of 31 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The impairment test showed that the recoverable amount of the pathology cash-generating unit exceeded its carrying amount. However, the recoverable amount would equal the carrying amount if the pre-tax discount rate were to rise by 0.5% or the growth rate were to decline by 0.9%.」
No material impairment loss occurred in the pathology business, and the threshold widened from the previous year's sensitivity of a 0.3% discount rate and 0.5% growth rate. - FY2025RestatedAnnual report
「The impairment test showed that the recoverable amount of the pathology cash-generating unit exceeded its carrying amount. However, the recoverable amount would equal the carrying amount if the pre-tax discount rate were to rise by 0.3% or the growth rate were to decline by 0.5%.」
No material impairment loss occurred during the current fiscal year, but the pathology business showed sensitivity such that its recoverable amount would equal its carrying amount if the discount rate rose by 0.3% or the growth rate declined by 0.5%. - FY2024RestatedAnnual report
「The Group determined that there were indications of impairment of goodwill allocated to the pathology cash-generating unit. As a result of conducting an impairment test on the pathology cash-generating unit, the Group determined that its carrying amount exceeded its recoverable amount and recognized an impairment loss of ¥2,167 million.」
The pathology business recognized goodwill impairment of ¥2,167 million for the full fiscal year against the backdrop of the gap from the business plan and the increase in the discount rate. - FY2024-Q3RestatedAnnual report
「In the pathology business, the main factor was a ¥2,113 million impairment loss on goodwill recognized in the second quarter of the current fiscal year, despite the benefits of initiatives to improve profitability and a gain on the sale of shares in an affiliated company recognized during the same period.」
Goodwill impairment arising from the gap between the pathology business's performance and business plan, among other factors, continued to be cited as a factor behind the decline in operating profit in the third quarter. - FY2024-Q2MaterialisedAnnual report
「Although measures such as price increases and cost reductions produced some improvement in performance, a gap emerged between actual performance and the business plan, and the risk-free rate underlying the discount rate used in the impairment test increased. After comprehensively considering these and other factors, the Group determined that there were indications of impairment of goodwill allocated to the pathology cash-generating unit in the second quarter of the current fiscal year. As a result of conducting an impairment test on the pathology cash-generating unit, the Group determined that its carrying amount exceeded its recoverable amount and recognized an impairment loss of ¥2,113 million in the second quarter of the current fiscal year.」
An impairment test was conducted against the backdrop of the gap between the pathology business's performance and business plan and the rise in the risk-free rate, resulting in the recognition of a goodwill impairment loss of ¥2,113 million.