Risk of fluctuations in the valuation of slow-moving inventory such as information and communications equipment racks and in sales prospects
First written in FY2021. 1 of 2 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2018: 3 of 9 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「If sales volumes decline or selling prices fall by more than anticipated due to deteriorating market conditions or other factors, the period used to determine whether products are slow-moving and the write-down rate may fail to appropriately reflect the decline in profitability.」
The valuation method based on expected sales and the valuation risks arising from deteriorating market conditions, lower sales volumes and falling prices for slow-moving information and communications equipment racks and similar products continue to be identified as risks. - FY2021First statedAnnual report
「Slow-moving products that have fallen outside the normal operating cycle are written down on a systematic basis once they have remained in inventory beyond a specified period. The period used to determine whether products are slow-moving and the write-down rate are determined based on expected future sales. If sales volumes decline or selling prices fall by more than anticipated due to deteriorating market conditions or other factors, the period used to determine whether products are slow-moving and the write-down rate may fail to appropriately reflect the decline in profitability.」
The Company newly disclosed its valuation method for slow-moving information and communications equipment racks and similar products, which is based on expected sales, as well as valuation risks arising from deteriorating market conditions, lower sales volumes and falling selling prices.