Acquisitions, Subsidiary Formation, Investee Underperformance Against Plans, and Impairment Risk
First written in FY2021. 6 of 10 entries say "Materialised", first in FY2022. Latest entry: FY2027-H1.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2027-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」
The company states that there have been no material changes regarding the failure of acquisitions, subsidiary formation and investee companies to meet plans, and impairment risk. - FY2026MaterialisedAnnual report
「Extraordinary losses for the current fiscal year totaled ¥160,785 thousand. This was attributable to impairment losses of ¥160,785 thousand.」
The risk of acquisitions and investees failing to meet plans and of declining asset values materialized as impairment losses, including ¥157,436 thousand in prepaid expenses and other assets and ¥3,349 thousand in buildings and other assets in the sports business. - FY2026-H1MaterialisedAnnual report
「② 福島スポーツエンタテインメント株式会社, Koriyama, Fukushima Prefecture, store, buildings and building fixtures, ¥3,349 thousand ② Because the store was closed and future earnings could no longer be expected, an impairment loss was recognized by setting the recoverable amount at zero.」
Following the closure of a store operated by 福島スポーツエンタテインメント株式会社, future earnings could no longer be expected, and the company recognized an impairment loss of ¥3,349 thousand on buildings and building fixtures. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period under review, there were no newly arising matters concerning business and other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes regarding the failure of acquisitions, subsidiary formation and investee companies to meet plans, and impairment risk. - FY2024-Q2MaterialisedAnnual report
「Regarding the goodwill arising when the company acquired the M&A consulting business from TIGALA株式会社 in 2019, the company recognized an impairment loss by setting the recoverable amount at zero because the originally projected earnings could no longer be expected following a revision of the business plan. Regarding the goodwill arising when the consolidated subsidiary acquired the shares of 福島スポーツエンタテインメント株式会社, goodwill was recognized on the assumption of excess earning power at the time of the acquisition. However, after considering the future earnings outlook and recoverability, the company recognized an impairment loss by setting the recoverable amount at zero.」
The risk of acquired businesses and investments failing to meet plans and declining recoverability of associated goodwill materialized, resulting in impairment losses of ¥30,743 thousand in the M&A consulting business and ¥3,279 thousand in the 福島スポーツエンタテインメント business. - FY2023MaterialisedAnnual report
「Because the fair value of certain investment securities held by the company and its consolidated subsidiaries had declined substantially below their carrying value, the company recognized a valuation loss on investment securities of ¥194,356 thousand as an extraordinary loss during the current fiscal year.」
The risk of declining investee value and impairment materialized as a ¥194,356 thousand valuation loss on investment securities. - FY2023-Q3MaterialisedAnnual report
「For operating assets, impairment losses have been recognized by setting their recoverable amount at zero because operating profit or loss is continuously negative, or is expected to remain continuously negative.」
The company recognized an impairment loss of ¥225 thousand on operating assets in the sports entertainment business because the business is expected to remain persistently loss-making. - FY2022MaterialisedAnnual report
「During the current fiscal year, the company recognized impairment losses of ¥15,711 thousand on goodwill of シキラボ and ¥6,993 thousand on buildings, tools, furniture and fixtures of 福島スポーツエンタテインメント株式会社.」
The risk of declining asset values and impairment associated with acquisitions and the formation of subsidiaries materialized as impairment of シキラボ's goodwill and fixed assets in the sports business. - FY2022-Q3RestatedAnnual report
「During the first nine months of the fiscal year under review, there were no newly arising matters concerning business and other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes regarding the failure of acquisitions, subsidiary formation and investee companies to meet plans, and impairment risk. - FY2021First statedAnnual report
「To expand its business and improve profitability, the Group may acquire companies, establish subsidiaries and make business investments for the purpose of forming alliances. Although the Group makes investments and loans after thoroughly evaluating the risks and recoverability of each transaction in advance, it may be difficult to reliably predict the impact of an investee's business on the Group. If an investee's business does not progress as planned or the Group is unable to deploy its management resources efficiently, this may affect the Group's operating results and financial condition.」
In line with the policy of expanding subsidiaries, acquisitions, alliances and support for investee companies, the company newly disclosed the risks of investee companies failing to meet their plans, insufficient use of management resources, and declining asset values and impairment.