Risk of Fixed-Asset Impairment Due to Deteriorating Business Profitability
First written in FY2019. 6 of 11 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2025.
The whole theme swung hardest in 2026: 67 of 129 companies on the "Worse" side.
- FY2025MaterialisedAnnual report
「During the current consolidated fiscal year, profitability in the Merchandise Business declined and future cash flows were expected to be negative. Accordingly, the recoverable amount was set at ¥0, and the full carrying amount was recognized as an impairment loss, resulting in an extraordinary loss of ¥31.084 million.」
The risk of impairment losses on fixed assets arising from deteriorating business profitability and future cash flows materialized as a ¥31.084 million impairment loss in the merchandise sales business. - FY2024MaterialisedAnnual report
「ARTIZA VIETNAM SOFTWARE DEVELOPMENT CO., LTD is grouped as a single company. As a decision was made to close the company during the fiscal year under review, its recoverable amount was set at ¥0, and the entire carrying amount was recognized as an impairment loss, resulting in an extraordinary loss of ¥2.743 million.」
Following the decision to close the Vietnamese subsidiary, an impairment loss of ¥2.743 million was recognized because no future cash flows were expected. - FY2024-Q3MaterialisedAnnual report
「ARTIZA VIETNAM SOFTWARE DEVELOPMENT CO., LTD is grouped as a single company. As a decision was made to close the company during the third quarter of the current consolidated fiscal year, its recoverable amount was set at ¥0, and the entire carrying amount was recognized as an impairment loss, resulting in an extraordinary loss of ¥2.883 million. The recoverable amount is measured based on value in use and was set at zero because no future cash flows are expected.」
The risk of impairment losses on fixed assets arising from deteriorating business profitability and future cash flows materialized through the decision to close the Vietnamese subsidiary and the recognition of an impairment loss of ¥2.883 million. - FY2023MaterialisedAnnual report
「During the fiscal year under review, the profitability of the “IP Network Solution” business declined and future cash flows were expected to be negative. Accordingly, the recoverable amount was set at ¥0, and the entire carrying amount was recognized as an impairment loss, resulting in an extraordinary loss of ¥51.737 million.」
The risk of impairment losses on fixed assets arising from deteriorating business profitability and future cash flows materialized as a ¥51.737 million impairment loss in the IP Network Solution business. - FY2023-Q2MaterialisedAnnual report
「In the IP Network Solutions segment, profitability has declined and future cash flows are expected to be negative. Accordingly, the recoverable amount was set at ¥0, and the full carrying amount of ¥51.187 million was recognized as an impairment loss under extraordinary losses.」
The risk of impairment losses on fixed assets arising from deteriorating business profitability and future cash flows materialized as an impairment loss of ¥51.187 million. - FY2022-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No material changes have been identified in the risk of impairment losses on fixed assets due to deteriorating business profitability. - FY2021-Q2MaterialisedAnnual report
「As a result of recognizing ¥19.2 million in impairment losses on fixed assets as an extraordinary loss following the decision to discontinue their use, net income attributable to owners of the parent was ¥468.149 million, up 197.9% year on year.」
Tools, fixtures and equipment and software relating to idle head-office assets no longer expected to be used in the future were written down to a carrying amount of ¥0, and an impairment loss of ¥19.2 million was recognized. - FY2020RestatedAnnual report
「If business profit forecasts deteriorate in the future, the underlying conditions or assumptions change, or an event occurs that significantly affects order trends, future cash flows and recoverable amounts may decline, potentially resulting in the recognition of impairment losses.」
The company has reconfirmed the risk that deterioration in business profitability, underlying conditions or order trends may reduce future cash flows and recoverable amounts. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No material changes have been identified in the risk of impairment losses on fixed assets due to deteriorating business profitability. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No material changes have been identified in the risk of impairment losses on fixed assets due to deteriorating business profitability. - FY2019First statedAnnual report
「The company is considering whether impairment treatment is required for the fixed assets held by the Group, in accordance with the Accounting Standard for Impairment of Fixed Assets. If business profit forecasts deteriorate in the future, future cash flows and recoverable amounts may decline, potentially resulting in the recognition of impairment losses.」
The company states that deterioration in future business profit forecasts and other factors may reduce future cash flows and recoverable amounts for fixed assets, potentially resulting in the recognition of impairment losses.