Impact of COVID-19 on Fixed Asset Impairment Testing
First written in FY2021-Q2. 2 of 4 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2023.
Namura Shipbuilding moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 3 of 7 companies on the "Worse" side.
6 other companies' latest entry also says "Reframed".
- FY2023ReframedAnnual report
「We may recognise impairment losses on property, plant and equipment held by the Group when, for example, the outlook for future cash flows declines due to changes in the business environment.」
The disclosure has been broadened from the specific factor of impairment testing prompted by COVID-19 to the general risk of impairment of property, plant and equipment associated with changes in the business environment and future cash flows. - FY2021MaterialisedAnnual report
「At Sasebo Heavy Industries Co., Ltd., our consolidated subsidiary, the Board of Directors resolved on 12 February 2021 to suspend the newbuild business upon the final delivery of existing ship orders, scheduled for January 2022. Accordingly, Sasebo Heavy Industries Co., Ltd. recognised an impairment loss on business-use assets, including shared assets, measured at a larger unit of account, and reduced their carrying amount to the recoverable amount.」
Following a review of future cash flows reflecting the adverse impact on demand for newbuilds, an impairment loss of ¥8,269 million related to Sasebo Heavy Industries was recognised. - FY2021-Q3MaterialisedAnnual report
「As stated under “Quarterly Consolidated Statements of Income,” impairment losses related to Sasebo Heavy Industries Co., Ltd. have been recognised.」
Future cash flows were reviewed based on the assumption that COVID-19’s adverse impact on demand for newbuilds would continue for a certain period, and an impairment loss on property, plant and equipment related to Sasebo Heavy Industries was actually recognised. - FY2021-Q2First statedAnnual report
「The Group estimates future cash flows and makes impairment-accounting judgments for property, plant and equipment on the assumption that the adverse impact of the spread of COVID-19 on demand for newbuilds will continue for a certain period.」
The assumption that COVID-19’s adverse impact on demand for newbuilds will continue for a certain period has been reflected in estimates of future cash flows and judgments under impairment accounting for property, plant and equipment.