Dependence of OmniGrid goodwill and customer-related assets on business plans and impairment risk
First written in FY2022. 1 of 4 entries say "Restated". Latest entry: FY2026.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The sale of the IVR services and BizTAP businesses has been completed. By reducing its goodwill amortisation burden and focusing on its existing monetised businesses, BizTAP AI and Deskwing, the company is seeing a downward trend in revenue compared with before the sale, but its profit structure has improved significantly and it has shifted toward contributing profit to the group.」
The company stated that, following the sale of businesses prompted by the shortfall in EPARK IDs, the goodwill amortisation burden decreased and the profit structure improved through a focus on existing monetised businesses. - FY2026-H1MaterialisedAnnual report
「Because the number of IDs held by EPARK, the principal customer for the IVR services provided by OmniGrid, had continued to fall below the initial plan, the sale of the IVR services and BizTAP businesses was completed.」
The number of EPARK IDs, a key element of OmniGrid's business plan, fell below the initial plan, leading to the sale of the IVR services and BizTAP-related businesses. - FY2023RestatedAnnual report
「The goodwill balance on the consolidated balance sheet mainly relates to the OmniGrid business. The business plans underlying undiscounted future cash flows use important assumptions regarding revenue growth resulting from increases in the number of users of OmniGrid services and users of optional services, and extend over a long period.」
The goodwill valuation continues to depend on increases in the number of users of the OmniGrid business, users of optional services and revenue growth. - FY2022First statedAnnual report
「The goodwill balance on the consolidated balance sheet mainly relates to the OmniGrid business, while the entire balance of customer-related assets relates to the Deskwing business. The business plans underlying undiscounted future cash flows use important assumptions, including the revenue growth rate resulting from an increase in users of the OmniGrid business and the retention rate of existing customers in the Deskwing business, and extend over a long period.」
Valuation risks based on long-term business plans were disclosed for goodwill of ¥793.210 million and customer-related assets of ¥399.750 million, including assumptions regarding increases in users, revenue growth rates and existing-customer retention rates.