Risk of Collecting Trade Receivables from Small Partner Companies
First written in FY2018. 4 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Our group records an allowance for doubtful accounts as an accounting policy, and this allowance reflects estimates of uncollected amounts from accounts receivable.」
The consolidated allowance for doubtful accounts increased from ¥152.378 million in the previous fiscal year to ¥156.170 million. The allowance for the collectibility risk associated with small partner companies has continued and increased. - FY2026-H1WorsenedAnnual report
「This was due to a ¥61.724 million increase in the allowance for doubtful accounts, which is a contra-asset.」
The allowance for doubtful accounts increased by ¥61.724 million, indicating an increased allowance for the collectibility of amounts due from small partner companies and others. The risk has been quantified, but no individual default is disclosed. - FY2025-H1WorsenedAnnual report
「Cash provided by operating activities was ¥119.933 million. This was mainly attributable to interim net income before income taxes and other adjustments of ¥116.205 million, an increase of ¥30.102 million in the allowance for doubtful accounts, an increase of ¥119.215 million in trade receivables, an increase of ¥211.060 million in contract liabilities, an increase of ¥64.564 million in other current assets, and income taxes paid of ¥84.238 million.」
An increase of ¥30.102 million in the allowance for doubtful accounts was recorded, indicating an increased allowance for the collectibility of amounts due from small partner companies and others. - FY2024Disclosed as a significant accounting estimate following consolidationAnnual report
「The collectibility risk includes cases in which partner companies substantially delay payment or become unable to pay.」
The collectibility risk associated with partner companies is described in detail as a significant accounting estimate, and an allowance for doubtful accounts of ¥161.196 million is recorded in the consolidated financial statements. The allowance for doubtful accounts is to be reviewed at least quarterly. - FY2023RestatedAnnual report
「Many of our main partner companies to which we sell products and services are relatively small and have high credit risk, making receivables management for partner companies important. Currently, the transaction amount per partner is small. When a payment is delayed, we suspend transactions and resume them after collecting the amount due, thereby seeking to ensure collection.」
We have reconfirmed the credit and collection risks associated with small partner companies and the management method of suspending transactions when payments are delayed and resuming them after collection. - FY2022RestatedAnnual report
「Many of the partner companies to which we sell products are relatively small and have high credit risk, making receivables management for partner companies important. Currently, the transaction amount per partner is small. When a payment is delayed, we suspend transactions and resume them after collecting the amount due, thereby seeking to ensure collection. However, if the business conditions of many partner companies deteriorate at the same time due to a major change in economic conditions or other factors, we may be unable to collect sufficient amounts due from partner companies, which could impede the conduct of our business.」
We have reconfirmed the credit and collection risks associated with small partner companies and the management method of suspending transactions when payments are delayed and resuming them after collection. - FY2021RestatedAnnual report
「Many of the partner companies to which we sell products are relatively small and have high credit risk, making receivables management for partner companies important. Currently, the transaction amount per partner is small. When a payment is delayed, we suspend transactions and resume them after collecting the amount due, thereby seeking to ensure collection.」
We have reconfirmed the credit and collection risks associated with small partner companies and the management method of suspending transactions when payments are delayed and resuming them after collection. - FY2020MaterialisedAnnual report
「The main reason profit did not grow as much as revenue was the increase in the provision for the allowance for doubtful accounts, which rose by ¥89.101 million year on year as the Company made a conservative allowance based on its track record of collecting trade receivables.」
The allowance for doubtful accounts based on our collection history for accounts receivable increased by ¥89.101 million year on year, and the impact of credit and collection risk on profit is disclosed. - FY2019RestatedAnnual report
「Many of the partner companies to which we sell products are relatively small and have high credit risk, making receivables management for partner companies important. Currently, the transaction amount per partner is small. When a payment is delayed, we suspend transactions and resume them after collecting the amount due, thereby seeking to ensure collection.」
We have reconfirmed the credit risk of small partner companies and the management method of suspending transactions when payments are delayed and resuming them after collection. - FY2018First statedAnnual report
「Many partner companies are relatively small and have high credit risk, making receivables management for partner companies important.」
The Company anticipates the risk of uncollectible receivables resulting from credit deterioration at small partners or simultaneous deterioration in their business conditions.