Recognition of an Extraordinary Loss (Impairment Loss on Investment Securities) in the Separate Financial Statements
PORT INC. (the filing company)
Investment securities in 4 companies (the names of the companies are not disclosed)
Under the accounting rules for separate financial statements, impairment must be recognized mechanically, with greater weight given to current conservative financial figures than to future prospects. Investees tend to have lower current net assets because of upfront investments and other expenditures made during their growth phase.
¥320 million (an extraordinary loss and impairment loss on investment securities in the separate financial statements; no impact on consolidated profit or loss)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Reflected in the Consolidated Financial Results for the Fiscal Year Ending March 2026 under IFRS released today. There is no impact on consolidated profit or loss.
From the fiscal year ending March 2027 onward, the Company plans to conduct valuations each fiscal year in accordance with the PORT Impairment Testing and Fair Value Measurement Guidelines. The Company will continue investing in promising startups where business synergies are expected, and similar valuation losses may arise in the future. However, there will be no impact on profit or loss in the consolidated financial statements.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss (Impairment Loss on Investment Securities) in the Separate Financial Statements |
| Date of occurrence | 31 March 2026 (the end of the period covered by the separate financial statements for the fiscal year ending March 2026) |
| Date recognized / date notice received | 15 May 2026 (the recognition was approved at a board meeting held today) |
| Subject Entity | PORT INC. (the filing company) |
| Target Locations / Products | Investment securities in 4 companies (the names of the companies are not disclosed) |
| Cause | Under the accounting rules for separate financial statements, impairment must be recognized mechanically, with greater weight given to current conservative financial figures than to future prospects. Investees tend to have lower current net assets because of upfront investments and other expenditures made during their growth phase. |
| Amount of Impact on Business Performance | ¥320 million (an extraordinary loss and impairment loss on investment securities in the separate financial statements; no impact on consolidated profit or loss) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Reflected in the Consolidated Financial Results for the Fiscal Year Ending March 2026 under IFRS released today. There is no impact on consolidated profit or loss. |
| Outlook | From the fiscal year ending March 2027 onward, the Company plans to conduct valuations each fiscal year in accordance with the PORT Impairment Testing and Fair Value Measurement Guidelines. The Company will continue investing in promising startups where business synergies are expected, and similar valuation losses may arise in the future. However, there will be no impact on profit or loss in the consolidated financial statements. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Under the accounting rules for separate financial statements, impairment must be recognized mechanically, with greater weight given to the investees’ current conservative financial figures than to their future prospects. The Company explained that investees tend to have lower current net assets because of upfront investments and other expenditures made during their growth phase.