Loss Costs from Inventory Aging and Markdown Compensation for IT-Related Products
First written in FY2025. 1 of 2 entries say "Mitigated", first in FY2026. Latest entry: FY2026.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group strives to monitor and control inventory levels and reduce loss costs, including inventory compensation and valuation losses. “Net inventory valuation loss included in cost of sales: ¥12 million”」
The company continued to address the risks of inventory compensation and valuation losses associated with product obsolescence, reducing the inventory valuation loss from ¥322 million in the previous fiscal year to ¥12 million in the current fiscal year. - FY2025First statedAnnual report
「To maintain healthy sales of current products, we may revise prices downward and compensate business partners for the markdown amount on their inventory (inventory compensation). For internal inventory, we may strengthen freshness controls and record valuation losses or dispose of inventory based on experience and prevailing market prices. “Net inventory valuation loss included in cost of sales: ¥322 million”」
The risks of markdowns, inventory compensation, valuation losses and disposal resulting from product obsolescence due to technological innovation are disclosed separately. The inventory valuation loss for the fiscal year was disclosed as ¥322 million.