Risk of goodwill impairment due to failure to meet business plans after an acquisition
First written in FY2022-Q3. 3 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026RestatedAnnual report
「If business operations do not proceed as planned compared with the initial assumptions, the Group’s business performance could be affected by the recognition of impairment losses on goodwill and other assets.」
Continues to disclose the risk of impairment of goodwill arising from acquisitions if business operations fall below plan. - FY2025RestatedAnnual report
「The Company has recognized goodwill and other assets in connection with acquisitions through share purchases. If business operations do not proceed as planned compared with the initial assumptions, the Group’s business performance could be affected by the recognition of impairment losses on goodwill and other assets.」
Continues to disclose the risk of impairment of goodwill arising from acquisitions if business operations fall below plan. - FY2023-Q3MaterialisedAnnual report
「Because the Company decided to transfer the shares of PURE SOLUTIONS Co., Ltd., it recognized the remaining carrying amount of goodwill related to PURE SOLUTIONS as an impairment loss of ¥8,243 thousand and recorded it as an extraordinary loss. The goodwill arose from the acquisition of the Company’s consolidated subsidiary Life Support Co., Ltd.」
Following the decision to transfer the shares of PURE SOLUTIONS, ¥8,243 thousand of the goodwill arising from the Life Support acquisition was recognized as an impairment loss, meaning that the risk of goodwill impairment related to post-acquisition business plans and development materialized. - FY2022RestatedAnnual report
「The Company has recognized goodwill and other assets in connection with acquisitions through share purchases. If business operations do not proceed as planned compared with the initial assumptions, the Group’s business performance could be affected by the recognition of impairment losses on goodwill and other assets.」
Reiterates the risk of impairment if the post-acquisition operations of Life Support fall below plan after goodwill was recognized in connection with the acquisition. - FY2022-Q3First statedAnnual report
「The Company has recognized goodwill and other assets in connection with acquisitions through share purchases. If business development does not proceed as planned compared with the initial assumptions, the Group’s business performance could be affected by the recognition of impairment losses on goodwill and other assets.」
Identifies as a risk the impairment of goodwill recognized in connection with acquisitions and its impact on business performance if business development does not proceed as expected.