Impairment of contract-related intangible assets and goodwill due to franchise revenue falling short of target
First written in FY2022. 2 of 3 entries say "Restated". Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026RestatedAnnual report
「If impairment accounting becomes necessary due to deteriorating profitability in individual businesses or for other reasons, it may affect the Group's operating performance and financial condition.」
The Company reiterates the general risk of impairment of fixed assets, including contract-related intangible assets and goodwill associated with the franchise and facility-based care services businesses. - FY2023RestatedAnnual report
「The Company may record an impairment loss on contract-related intangible assets and goodwill if the assumed number of residents and forecasts for medical treatment fee volume and other items used at the time of acquisition fall substantially short of expectations, or if franchise contract cancellations exceed forecasts.」
The Company reiterates the impairment risk arising from franchise contract cancellations and shortfalls in the medical treatment fee volume forecast, and also identifies shortfalls in the number of residents in facility-based care services as an impairment factor. - FY2022First statedAnnual report
「The Company may record an impairment loss on contract-related intangible assets and goodwill if the forecast volume of medical treatment fees used in the assumptions at the time of acquisition falls substantially short of expectations or if franchise contract cancellations exceed forecasts.」
The Company first explicitly identified the possibility of impairment of contract-related intangible assets and goodwill due to shortfalls in the franchise medical treatment fee volume forecast and contract cancellations as a risk related to significant accounting estimates.