Impairment of LSIM Assets Due to Deviation from Business Plan Assuming a Recovery in PCR Testing
First written in FY2024-Q3. 1 of 3 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2025.
1 other company's latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The Healthcare Solutions business posted higher profit due to the absence of the ¥12,737 million impairment loss recognized in the LSIM business in the third quarter of the previous fiscal year, as well as the effects of cost reductions.」
The impact of the ¥12,737 million impairment loss recognized by the LSIM clinical testing cash-generating unit in the previous fiscal year did not recur in the current fiscal year, and the business posted operating profit. - FY2024RestatedAnnual report
「The future plan for the clinical testing cash-generating unit had been premised on the number of tests recovering to pre-pandemic levels after the COVID-19 pandemic subsided. After comprehensively considering the gap that had emerged between performance and the future plan, the Group changed the assumption underlying the future plan to allow for a longer recovery period and recognized an impairment loss of ¥12,737 million.」
The LSIM clinical testing cash-generating unit revised its assumption regarding the recovery in the number of tests and recognized an impairment loss of ¥12,737 million, including goodwill and intangible assets. - FY2024-Q3MaterialisedAnnual report
「In the LSIM business, the Group determined in the third quarter of the current fiscal year that there were indications of impairment due to, among other factors, a gap between the business plan premised on the number of tests recovering to pre-COVID-19 levels and recent results. Following an impairment test, the Group recognized an impairment loss of ¥13,983 million on goodwill and intangible assets.」
The gap between the assumption that the number of tests would recover to pre-pandemic levels and recent results constituted an indication of impairment, and the LSIM business recognized an impairment loss of ¥13,983 million on goodwill and intangible assets.