Risk of goodwill impairment associated with M&A
First written in FY2023. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Kyoei Security Service moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Company may recognize an impairment loss on goodwill held as a result of changes in estimates caused by downward revisions to established business plans, significant changes in projected results, or external market fluctuations.」
Goodwill increased from ¥364.722 million in the previous fiscal year to ¥966.800 million as a result of the acquisitions of 4 companies and other transactions. No impairment loss was recognized in the current fiscal year, but exposure to impairment risk associated with expanding M&A has increased. - FY2023First statedAnnual report
「The Group has goodwill. Goodwill may give rise to impairment losses as a result of deteriorating performance, a decline in market capitalization, changes in economic conditions, or changes in estimates and assumptions requiring significant judgment used in determining impairment.」
The Company recognized ¥137,950 thousand of goodwill through M&A and disclosed the possibility of impairment losses resulting from deteriorating performance, changes in market conditions, downward revisions to business plans and intensifying competition, among other factors, as a new major risk.