Goodwill as a Percentage of Total Assets and Impairment Risk
First written in FY2018. 7 of 19 entries say "Restated". Latest entry: FY2026.
MS&Consulting moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2019: 5 of 12 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The results of impairment tests for the current consolidated fiscal year showed that the recoverable amount exceeded the carrying amount, and no impairment loss was recognised. As of the end of the current consolidated fiscal year, the recoverable amount exceeded the carrying amount of the cash-generating unit to which goodwill had been allocated by ¥162.952 million.」
After an impairment loss on goodwill of ¥398.309 million was recognised in the previous fiscal year, no additional impairment loss was recognised in the current fiscal year, and the recoverable amount exceeded the carrying amount by ¥162.952 million. However, the disclosure indicated that impairment could arise if the discount rate increased by 1.0% or future cash flows declined by 6.5%. - FY2025MaterialisedAnnual report
「Based on the results of impairment tests for the current consolidated fiscal year, an impairment loss on goodwill of ¥398.309 million was recognised as other expenses in the consolidated statement of comprehensive income.」
In light of continued failure to meet earnings forecasts and delays in the earnings plan, an impairment loss of ¥398.309 million was recognised on goodwill. After the impairment recognition, the recoverable amount was equal to the carrying amount, and the possibility of further impairment was also indicated. - FY2024MitigatedAnnual report
「As of the end of the current consolidated fiscal year, the estimated recoverable amount exceeded the carrying amount of goodwill and other assets by ¥862.398 million. However, an impairment loss could arise if the pre-tax weighted average cost of capital increased by 4.4% or the total estimated future cash flows, including terminal value, declined by 25.3%.」
No impairment loss was recognised, and the excess of the recoverable amount was ¥862.398 million. The impairment sensitivity changed from the 19.7% disclosed in prior years to a 25.3% decline in future cash flows. - FY2024-Q3RestatedAnnual report
「Although the adverse effects of COVID-19 are gradually easing, the market environment is expected to remain uncertain. The Group has made estimates on the assumption that transaction volumes with customer companies would recover during the fiscal year ending February 2024.」
Although the impact of the infectious disease is easing, accounting estimates for fixed assets and other assets, including goodwill, continue to be based on the assumption that transaction volumes with customers will recover during the fiscal year ending February 2024. - FY2024-Q2RestatedAnnual report
「Although the adverse effects of COVID-19 are gradually easing, the market environment is expected to remain uncertain in light of the risk of a renewed spread of the infection. The Group has made estimates on the assumption that transaction volumes with customer companies would recover during the fiscal year ending February 2024.」
Although the adverse effects of the infectious disease are easing, accounting estimates for goodwill and other assets continue to be based on the assumption that transaction volumes will recover during the fiscal year ending February 2024, in light of the risk of a renewed spread of the infection. - FY2024-Q1RestatedAnnual report
「The Group has made estimates on the assumption that transaction volumes with customer companies would recover during the fiscal year ending February 2024. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
The Group continues to estimate impairment of fixed assets, including goodwill, on the assumption that transaction volumes will recover during the fiscal year ending February 2024, while uncertainty due to a renewed spread of the infection persists. - FY2023-Q3RestatedAnnual report
「The Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that transaction volumes with customer companies would recover during the fiscal year ending February 2024. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
The Group continues to estimate impairment of fixed assets, including goodwill, on the assumption that transaction volumes will recover during the fiscal year ending February 2024, while uncertainty due to a renewed spread of the infection persists. - FY2023-Q1WorsenedAnnual report
「The Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that transaction volumes with customer companies would recover during the fiscal year ending February 2024. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
For estimates concerning impairment of fixed assets, including goodwill, the Group assumed that transaction volumes with customer companies would recover during the fiscal year ending February 2024. The expected recovery was pushed back from the previous assumption that COVID-19 would be contained and stores would resume normal operations during the fiscal year ending February 2023, while uncertainty due to a renewed spread of the infection continues. - FY2022WorsenedAnnual report
「As of the end of the current consolidated fiscal year, the estimated recoverable amount exceeded the carrying amount of goodwill and other assets by ¥694.656 million. However, an impairment loss could arise if the pre-tax weighted average cost of capital increased by 3.5% or the total estimated future cash flows, including terminal value, declined by 19.7%.」
No impairment loss was recognised in the current fiscal year, but the excess of the recoverable amount over the carrying amount was ¥694.656 million. The disclosure indicated that impairment could arise if the discount rate increased by 3.5% or future cash flows declined by 19.7%. - FY2022-Q3RestatedAnnual report
「The Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that COVID-19 would be contained in the fiscal year ending February 2023 and that customers' stores would be able to operate normally. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
The estimates, including impairment of fixed assets and other assets, including goodwill, and the related uncertainty remain based on the assumption that the infectious disease would be contained and stores would resume normal operations in the fiscal year ending February 2023. - FY2022-Q2RestatedAnnual report
「The Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that COVID-19 would be contained in the fiscal year ending February 2023 and that customers' stores would be able to operate normally. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
The estimates, including impairment of fixed assets and other assets, including goodwill, remain based on the assumption that the infectious disease would be contained and stores would resume normal operations in the fiscal year ending February 2023, and the related uncertainty continues. - FY2022-Q1WorsenedAnnual report
「The Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that COVID-19 would be contained in the fiscal year ending February 2023 and that customers' stores would be able to operate normally. If uncertainty concerning these estimates and the underlying assumptions increases due to the impact of the spread of COVID-19 on the business, this could affect the Group's operating results and financial position.」
The Group estimated impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that the infectious disease would be contained and stores would resume normal operations in the fiscal year ending February 2023, and disclosed the uncertainty surrounding these estimates. - FY2021MitigatedAnnual report
「The results of impairment tests for the previous and current consolidated fiscal years showed that the recoverable amount exceeded the carrying amount, and no impairment loss was recognised. … As of the end of the current consolidated fiscal year, the estimated recoverable amount exceeded the carrying amount of goodwill and other assets by ¥1,582.343 million.」
No goodwill impairment arose in the current fiscal year despite the impact of the infectious disease, and the recoverable amount exceeded the carrying amount by ¥1,582.343 million. However, the Group disclosed that impairment could arise if the discount rate increased by 6.8% or future cash flows declined by 37.4%. - FY2021-Q3WorsenedAnnual report
「Although the timing of the containment of COVID-19 is difficult to predict, because its impact on the fiscal year ending February 2021 was greater than expected, the Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that the impact would continue for a certain period from the fiscal year ending February 2022 onward.」
The Group estimated impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, assuming that the impact of the infectious disease would continue for a certain period from the fiscal year ending February 2022 onward. - FY2021-Q2WorsenedAnnual report
「Accordingly, revenue for the current consolidated fiscal year is expected to decline by approximately 30% compared with cumulative consolidated revenue for the fiscal year ended March 2019 and the fiscal year ended February 2020 (Note), although the business environment has been gradually recovering since the second quarter, after the state of emergency was fully lifted.」
The impact of COVID-19 was quantified as an expected approximately 30% decline in full-year revenue from the comparable periods, and it has also affected estimates of impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets. - FY2021-Q1WorsenedAnnual report
「Although the timing of the containment of COVID-19 is difficult to predict, the Group has made accounting estimates concerning impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets, based on the assumptions described above and information available as of the date on which these condensed quarterly consolidated financial statements were prepared. If the situation deviates from these assumptions and the issue becomes prolonged, it could have a material impact on the Group's financial position and operating results.」
The timing of the containment of COVID-19 was considered difficult to predict, and the Group began estimating impairment of fixed assets, including goodwill, and the recoverability of deferred tax assets based on assumptions concerning the infectious disease. The potential for a material impact if the situation became prolonged was also expressly stated. - FY2020RestatedAnnual report
「The results of impairment tests for the previous and current consolidated fiscal years showed that the recoverable amount exceeded the carrying amount, and no impairment loss was recognised.」
No impairment loss was recognised on goodwill in the current fiscal year, and the Group explained that a material impairment loss is unlikely even if the key assumptions change within a reasonably foreseeable range. - FY2019MitigatedAnnual report
「The results of impairment tests for the previous and current consolidated fiscal years showed that the recoverable amount exceeded the carrying amount, and no impairment loss was recognised. The Group has also determined that a material impairment loss is unlikely even if the key assumptions used in the impairment assessment change within a reasonably foreseeable range.」
The Group performed an impairment test on goodwill of ¥2,223.891 million and explained that the recoverable amount exceeded the carrying amount, so no impairment loss was recognised. - FY2018First statedAnnual report
「The Group reports goodwill as a non-current asset, and goodwill represents a high percentage of total assets. As the Group prepares consolidated financial statements under IFRS, goodwill is not subject to regular amortisation each period. However, if the profitability of the business to which the goodwill relates declines and an impairment loss is recognised, this could affect the Group's operating results and financial position.」
The consolidated statement of financial position includes goodwill of ¥2,223.891 million, and the Group has disclosed the impairment risk if profitability declines.