Risk of Unrecoverable M&A and Other Investments and Impairment
First written in FY2019. 3 of 9 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2026.
Rvh moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
88 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group conducts investments and loans after sufficiently evaluating the risks and recoverability of each project in advance. However, it may be difficult to accurately forecast the impact of an investee’s business conditions on the Group, and failure to recover the amounts invested or lent could affect the Group’s operating results and financial condition.」
Alongside its policy of conducting advance assessments of investments and loans, the Company continues to disclose the risk that it cannot accurately forecast the earnings situation or recoverability of investment and lending recipients. - FY2024MaterialisedAnnual report
「The Company recognized ¥507.981 million of goodwill related to 株式会社ＢＳ ＥＮＥＲＧＹ and 井の三風力発電株式会社 as an impairment loss, and ¥100 million of work in progress related to the solar power generation business as an inventory valuation loss, both under extraordinary losses.」
The failure of M&A and investment exposures to meet business plans and the associated recovery and monetization risks materialized as a ¥507.981 million impairment loss on goodwill at BS ENERGY and other entities and a ¥100 million valuation loss on work in progress related to solar power generation. - FY2022RestatedAnnual report
「The Group conducts investments and loans after sufficiently evaluating the risks and recoverability of each project in advance. However, it may be difficult to accurately forecast the impact of an investee’s business conditions on the Group, and failure to recover the amounts invested or lent could affect the Group’s operating results and financial condition.」
The Company discloses as an ongoing key risk the possibility of unrecoverable amounts and impairment, alongside its policy of conducting advance assessments of M&A and investment opportunities. - FY2021WorsenedAnnual report
「With respect to goodwill at the consolidated subsidiary Ｋ２Ｄ株式会社, the Company reduced its carrying amount to its recoverable amount because the earnings initially projected in the business plan considered at the time of acquisition were no longer expected, and recognized the reduction as an impairment loss under extraordinary losses.」
The monetization risk associated with M&A and investment exposures became additionally apparent in K2D’s failure to achieve projected earnings and a ¥67 million impairment loss on goodwill. - FY2021-Q2WorsenedAnnual report
「In the “WEB Services” segment, the Company recognized an impairment loss of ¥67 million because some subsidiaries were no longer expected to generate the earnings initially projected.」
The monetization risk associated with investees, lending recipients and subsidiaries became additionally apparent in the form of a ¥67 million impairment loss at a WEB services subsidiary due to earnings falling short of initial projections. - FY2021-Q1MaterialisedAnnual report
「The Company recognized a loss on the sale of shares in an affiliated company of ¥451 million and a loss on the waiver of receivables of ¥742 million in connection with the transfer of shares in 株式会社ラブリークィーン.」
The recovery and monetization risks associated with M&A and investment exposures materialized as actual losses of ¥451 million on the transfer of shares in ラブリークィーン and ¥742 million on the waiver of receivables. - FY2020WorsenedAnnual report
「Extraordinary losses totaled ¥3,307 million (up 139.2% year on year), mainly due to the recognition of ¥1,987 million in impairment losses on goodwill and other assets and ¥1,195 million in provision for doubtful accounts.」
Risks associated with deteriorating earnings at investees, lending recipients and subsidiaries became significantly more apparent than in the previous year in the form of impairment losses of ¥1,987 million on goodwill and other assets and a ¥1,195 million provision for allowance for doubtful accounts. - FY2020-Q2MaterialisedAnnual report
「In the “Other Businesses” segment, the Company recognized an impairment loss of ¥356 million because some subsidiaries were no longer expected to generate the earnings initially projected.」
Expected earnings from investees, lending recipients and subsidiaries could no longer be achieved, resulting in the recognition of an impairment loss of ¥356 million. The risk of uncollectible M&A and investment exposures and impairment materialized as an actual loss. - FY2019First statedAnnual report
「To expand its businesses and improve profitability going forward, the Group may acquire companies, establish subsidiaries, develop joint ventures and make business investments for alliances, both in Japan and overseas. Failure to recover the amounts invested or lent could affect the Group’s operating results and financial condition.」
The Company discloses the risk that it may be unable to forecast the business conditions of investees and lending recipients in connection with investments, loans, acquisitions, subsidiary establishments, joint ventures and alliances, resulting in unrecoverable amounts or impairment.