Uncertainty in Valuation Losses on Long-Stagnant Products and the Sales Outlook
First written in FY2021. 2 of 8 entries say "Softened", first in FY2022-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Our products ¥2,701.918 million ¥2,385.314 million Product valuation losses included in cost of sales (after offsetting reversals recognized at the beginning of the period) (¥72.275 million) (¥129.723 million)」
The product balance decreased from ¥2,701.918 million to ¥2,385.314 million, and reversals of product valuation losses increased. The burden of valuation losses on long-outstanding products decreased. - FY2025MitigatedAnnual report
「Products are measured using the cost method based on the moving-average method, with write-downs for declining profitability, and product valuation losses are estimated by product based on past sales performance, turnover periods and future salability.」
The product balance decreased from ¥3,014.502 million to ¥2,701.918 million, and product valuation losses included in cost of sales changed from ¥274.656 million to a reversal of ¥72.275 million. The burden of valuation losses on long-outstanding products decreased during the fiscal year. - FY2024WorsenedAnnual report
「Our products ¥2,913.989 million ¥3,014.502 million Product valuation losses included in cost of sales (after offsetting reversals recognized at the beginning of the period) ¥2.698 million ¥274.656 million」
The product balance increased from ¥2,913.989 million to ¥3,014.502 million, while product valuation losses increased substantially from ¥2.698 million to ¥274.656 million. The valuation risk associated with long-outstanding products has expanded into actual losses. - FY2023RestatedAnnual report
「Products are measured using the cost method based on the moving-average method, with write-downs for declining profitability, and product valuation losses are estimated by product based on past sales performance, turnover periods and future salability.」
The company continues to disclose its method of estimating valuation losses on products of ¥2,913.989 million based on past sales performance, turnover periods and future sales volumes and prices, as well as the uncertainty arising from the inventory and ordering policies of major customers. - FY2022-Q3RestatedAnnual report
「Accordingly, we recognize that the impact on accounting estimates, including inventory valuation, impairment of fixed assets and the recoverability of deferred tax assets, is immaterial.」
The company continues to recognize that the impact of COVID-19 on accounting estimates, including inventory valuation, is immaterial. - FY2022-Q2SoftenedAnnual report
「Accordingly, we recognize that the impact on accounting estimates, including inventory valuation, impairment of fixed assets and the recoverability of deferred tax assets, is immaterial.」
The company continues to recognize that the impact of COVID-19 on accounting estimates, including inventory valuation, is immaterial. - FY2022-Q1SoftenedAnnual report
「Accordingly, we recognize that the impact on accounting estimates, including inventory valuation, impairment of fixed assets and the recoverability of deferred tax assets, is immaterial.」
There were no material changes in the assumptions underlying accounting estimates, and the company indicated that the impact of COVID-19, including on inventory valuation, was immaterial. - FY2021First statedAnnual report
「For products with extended turnover periods, we generally write down a certain percentage of their carrying amount according to the length of time they have remained in inventory. However, when we determine that the resulting write-down does not reflect actual conditions in light of the factors behind the extended turnover period and the outlook for future sales volumes and prices, we adjust the impairment loss recognized for each item.」
The company newly disclosed products of ¥2,346.580 million and product valuation losses of ¥210.181 million, noting that if the inventory quantities or ordering policies of major customers, or future sales volumes or prices, differ from estimates, this could have a material impact on products and valuation losses in the following fiscal year.