Accounting Estimates in Light of the Impact of COVID-19
First written in FY2021-Q1. 2 of 5 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2022.
- FY2022MitigatedAnnual report
「In the markets on which the Group focuses, the semiconductor and electronic components market performed well, the automotive components market recovered sharply by the first half of the fiscal year, and the industrial equipment and components market also continued to recover, supported in part by strong demand. Meanwhile, recovery in the hygiene products equipment and medical components markets remained gradual amid changes in the demand environment and other factors.」
In relation to the accounting recovery assumptions, the report stated that the semiconductor, automobile and industrial-equipment markets had recovered, while recovery in the sanitary-products-equipment and medical-parts markets remained gradual. - FY2022-Q1MitigatedAnnual report
「Alongside measures against COVID-19, the resumption of economic activity and stimulus measures in each country led to a broad recovery in the Electrical Parts business. Although signs of recovery were also seen in the Machinery Parts business, the impact of customers’ restraint on capital investment and other factors remained, and the Group assumes that performance will recover toward the end of the current consolidated fiscal year.」
The Electrical Parts business broadly recovered, while the accounting assumption for the Machinery Parts business was that recovery would occur by the end of the current consolidated fiscal year. - FY2021MaterialisedAnnual report
「Because it became clear that the recovery in the Sanitary Products Equipment business within the Machinery Parts business would be slower than initially expected, the Company recognised an impairment loss on the assets of that business group.」
The delayed-recovery assessment materialised as an impairment of fixed assets in the Sanitary Products Equipment business, and the Company recognised an impairment loss of ¥894 million. - FY2021-Q3WorsenedAnnual report
「However, in light of recent conditions, the Group revised its assumptions so that performance in the Electrical Parts business would broadly recover by around the end of the current consolidated fiscal year, while performance in the Machinery Parts business would recover by the end of the following consolidated fiscal year, in line with the resumption of economic activity and stimulus measures in each country.」
The recovery assumptions reflecting the impact of COVID-19 were revised, with recovery in the Electrical Parts business expected by around the end of the current fiscal year and recovery in the Machinery Parts business by around the end of the following consolidated fiscal year. - FY2021-Q1First statedAnnual report
「The Group has been affected by production cuts at major customers due to the spread of COVID-19. Although temporary demand declines are expected during the current consolidated fiscal year, the Group assumes that demand will gradually recover toward the end of the current consolidated fiscal year as the spread of the disease subsides worldwide and economic activity resumes. This assumption has been reflected in accounting estimates, including the recoverability of deferred tax assets and the assessment of indicators of impairment of fixed assets. The Group notes that actual future results may differ from these estimates and assumptions.」
Based on production cuts at major customers, the Group reflected in its assessment of the recoverability of deferred tax assets and indicators of impairment of fixed assets the assumption that demand would gradually recover toward the end of the fiscal year, while noting that actual results may differ from the assumption.