Impairment Losses on Investments and Uncollectible Receivables Due to Business-Partner Shutdowns and Credit Deterioration
First written in FY2023. 1 of 2 entries say "Materialised", first in FY2023. Latest entry: FY2024.
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- FY2024MitigatedAnnual report
「We are strengthening credit management for business partners and advancing the transfer of production from outsourced manufacturers to the Group in an effort to further strengthen our risk management framework.」
In response to the impairment loss and allowance for doubtful accounts arising from the deterioration in a business partner's credit standing in the previous fiscal year, the Company is strengthening credit management and transferring production from outsourced manufacturers to the Group as countermeasures. - FY2023MaterialisedAnnual report
「Kyosha Hong Kong recognized an impairment loss on the shares of the business partner held by the company and recorded an allowance for doubtful accounts because the receivables from the business partner became potentially uncollectible. The Company recorded an impairment loss on investment securities of ¥251 million and a provision for allowance for doubtful accounts of ¥585 million.」
Due to deteriorating business conditions and production stoppages at a Chinese business partner, an impairment loss on investment securities of ¥251 million and a provision for allowance for doubtful accounts of ¥585 million were actually recorded.