Risks of Unrecognized Liabilities, Failure to Achieve Integration Results, and Goodwill Impairment Associated with Business Acquisitions
First written in FY2020-Q1. 12 of 18 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2024: 39 of 91 companies on the "Worse" side.
- FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business risks and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business risks and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2024Update to full-year impairment lossAnnual report
「The goodwill impairment loss related to the event was ¥19.309 million for the current consolidated accounting period, and there was no remaining unamortized balance of provisional goodwill at the end of the period.」
Regarding the impairment risk associated with the Phabrix acquisition, an impairment loss of ¥71.645 million, including ¥19.309 million of goodwill, was recognized during the fiscal year, and there was no remaining unamortized balance of provisional goodwill at year-end. - FY2024-Q3Update to third-quarter impairment lossAnnual report
「The breakdown was buildings and structures, ¥26.218 million; tools, furniture and fixtures, ¥2.170 million; goodwill, ¥19.309 million; and other intangible assets, ¥14.602 million.」
The breakdown of the cumulative ¥62.299 million impairment loss for the UK asset group, including goodwill impairment associated with the Phabrix acquisition, was updated. The goodwill impairment loss was ¥19.309 million. - FY2024-Q2MaterialisedAnnual report
「The amortization of goodwill for the second quarter of the current consolidated fiscal year related to the event was ¥22.339 million, and the goodwill impairment loss for the second quarter was ¥19.309 million. There was no remaining unamortized balance of provisional goodwill at the end of the second quarter.」
Regarding the risk of failure to achieve expected results and goodwill impairment associated with the Phabrix acquisition, goodwill increased by ¥43.836 million due to contingent consideration, while a goodwill impairment loss of ¥19.309 million was recognized during the quarter, leaving no unamortized balance. - FY2023MaterialisedAnnual report
「As Phabrix Limited has reported continuing operating losses, there were indications of impairment at the end of the consolidated fiscal year under review. In assessing whether an impairment loss needed to be recognized, the company estimated Phabrix Limited’s undiscounted future cash flows using forecasts of future earnings and major expense items, including development costs, as key assumptions. The estimate indicated that total undiscounted future cash flows were below the carrying amount of the fixed assets, including goodwill, and it was determined that an impairment loss needed to be recognized. Accordingly, the entire carrying amount will be recorded as an impairment loss.」
The risk of failure to achieve expected results and goodwill impairment associated with the Phabrix acquisition materialized in the form of Phabrix’s continuing operating losses and recognition of an impairment loss of ¥360 million, including ¥230 million of goodwill. - FY2023-Q3RestatedAnnual report
「During the nine-month period ended in the third quarter, there was no occurrence of any new business or other risk, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2023-Q2RestatedAnnual report
「During the six-month period ended [current second quarter], there were no new business risks and no material changes to the business risks described in the prior fiscal year's annual securities report.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2022RestatedAnnual report
「As Phabrix Limited has reported continuing operating losses, there were indications of impairment at the end of the consolidated fiscal year under review. No impairment loss was recognized.」
Although impairment indicators continued as a result of Phabrix Limited’s continuing operating losses, undiscounted future cash flows exceeded the carrying amount, and no impairment loss was recognized. - FY2022-Q2RestatedAnnual report
「During the six-month period ended [current second quarter], there were no new business risks and no material changes to the business risks described in the prior fiscal year's annual securities report.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2021WorsenedAnnual report
「Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review: goodwill, ¥277.343 million. As Phabrix Limited has reported continuing operating losses, there were indications of impairment at the end of the consolidated fiscal year under review.」
Impairment indicators were explicitly identified for ¥277.343 million of goodwill associated with the Phabrix acquisition. No impairment loss was recognized for the fiscal year because future cash flows exceeded the carrying amount. - FY2021-Q3RestatedAnnual report
「During the nine-month period ended in the third quarter, there was no occurrence of any new business or other risk, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
It was disclosed that there had been no material changes in the existing risks associated with acquisitions, including unrecognized liabilities, failure to achieve expected results and goodwill impairment. - FY2020RestatedAnnual report
「The group acquired all shares of Phabrix Limited on 31 July 2019 and made it a consolidated subsidiary, and recorded goodwill associated with the M&A during the fiscal year under review.」
Risks associated with the Phabrix acquisition, including off-balance-sheet liabilities, failure to achieve expected results and goodwill impairment, continued to be disclosed. Goodwill recognition was confirmed as an actual result, but there was no indication that the risks themselves had materialized. - FY2020-Q3RestatedAnnual report
「The group acquired all shares of Phabrix Limited on 31 July 2019 and made it a consolidated subsidiary, and recorded goodwill associated with the M&A during the fiscal year under review.」
The acquisition of Phabrix Limited and the related goodwill recognition were disclosed as actual results. However, there was no indication that risks such as off-balance-sheet liabilities, failure to achieve expected results or goodwill impairment had materialized. - FY2020-Q2RestatedAnnual report
「However, the group’s results of operations and financial position may be affected if previously unrecognized off-balance-sheet liabilities are discovered after an acquisition, contingent liabilities materialize, initially expected results are not achieved due to sudden changes in the business environment or competitive conditions, or a goodwill impairment loss is incurred.」
The risks related to unrecognized liabilities, contingent liabilities, failure to achieve expected results and goodwill impairment following the acquisition of Phabrix Limited were reaffirmed. The disclosure does not state that the risks themselves had materialized. - FY2020-Q1First statedAnnual report
「However, the group’s results of operations and financial position may be affected if previously unrecognized off-balance-sheet liabilities are discovered after an acquisition, contingent liabilities materialize, initially expected results are not achieved due to sudden changes in the business environment or competitive conditions, or a goodwill impairment loss is incurred.」
Risks related to acquisitions were disclosed for the first time. It was indicated that unrecognized off-balance-sheet liabilities, contingent liabilities, failure to achieve expected results and goodwill impairment losses could affect results of operations and financial position. The disclosure also stated that goodwill associated with the acquisition of Phabrix Limited was scheduled to be recorded during the fiscal year under review, but did not state that any of the risks themselves had materialized.