Goodwill and intangible asset impairment risk
First written in FY2024. 1 of 3 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
Kokusai Electric moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2019: 5 of 13 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Assuming that the pre-tax discount rate remains constant, recoverable amount could equal the carrying amount of the business if estimated future cash flows decreased by 72.3%.」
Although the Group determined that no impairment loss was necessary, the rate of decline in future cash flows at which carrying amount would equal recoverable amount decreased from 74.1% in the previous fiscal year to 72.3%. - FY2025MitigatedAnnual report
「For the fiscal year ended March 2025, the impairment test indicated that value in use based on future cash flows, which represents recoverable amount, exceeded the carrying amount, and the Group determined that no impairment loss needed to be recognized.」
Although goodwill of ¥59,065 million and other assets continue to be recognized, the Group determined that no impairment was necessary based on the impairment test for the current fiscal year and also disclosed the sensitivity of future cash flows. - FY2024First statedAnnual report
「Goodwill and other intangible assets were recorded at ¥59,065 million and ¥56,494 million, respectively, for the fiscal year ended March 2024, together accounting for 30.8% of total consolidated assets.」
Goodwill and intangible assets together account for 30.8% of total assets, and the sensitivity analysis shows that recoverable amount would equal carrying amount if future cash flows decreased by 71.2%.