Goodwill Impairment Risk Associated with the Acquisition of 飯野ホールディング
First written in FY2017-Q3. 2 of 5 entries say "Restated". Latest entry: FY2024-Q1.
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
27 other companies' latest entry also says "Restated".
- FY2024-Q1RestatedAnnual report
「During the consolidated cumulative first-quarter period, there were no material changes in the risks related to our group’s business or other matters.」
The disclosure states that there have been no material changes in business and other risks, including the goodwill impairment risk associated with the acquisitions. - FY2021WorsenedAnnual report
「If the assumptions used in these estimates need to be revised because of changes in forecasts for automobile production volumes, including the spread of COVID-19, or progress in cost reductions, impairment losses may be recognized in the following consolidated fiscal year.」
The disclosure explicitly states that impairment may be recognized in the following fiscal year for goodwill and other assets related to the Iino and ATA groups, depending on automobile production forecasts affected by the pandemic and progress in cost reductions. - FY2019-Q1Change in contingent considerationAnnual report
「In the Automotive Bearings Other Than for Automobiles segment, contingent consideration under the share and receivables transfer agreement entered into in connection with the acquisition of ATA Casting Technology Japan Co., Ltd. resulted in a change in consideration of ¥1,850 million. Goodwill and the corresponding goodwill amortization were reduced by this amount.」
A ¥1,850 million change in contingent consideration related to the ATA acquisition occurred, and the corresponding goodwill and goodwill amortization were reduced. No goodwill impairment is stated to have occurred. - FY2018RestatedAnnual report
「It arose from a reasonable estimate of the future excess earning power expected from the business going forward.」
The accounting treatment for goodwill related to the ATA acquisition was finalized, with goodwill of ¥6,777 million to be amortized on a straight-line basis over 14 years. The impairment risk remains if the business does not develop as assumed after the acquisition, but no impairment of this goodwill is stated to have occurred during the fiscal year. - FY2017-Q3First statedAnnual report
「During the third quarter consolidated accounting period, we acquired all shares of Iino Holding Co., Ltd. As a result, goodwill of ¥6,003 million was recognized on the quarterly consolidated balance sheet as of the end of the third quarter consolidated accounting period. If the business does not develop as assumed at the time of the investment, the Group's operating results and financial position may be affected by impairment losses on goodwill and other intangible assets, as well as property, plant and equipment, arising in connection with the investment.」
The acquisition of Iino Holding resulted in the recognition of ¥6,003 million in goodwill, and a new disclosure was added regarding the impairment risk if the business does not develop as assumed. The goodwill amount is provisional, before purchase price allocation, and no impairment is stated to have occurred.