Goodwill Impairment Risk
First written in FY2021. 3 of 8 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
Celm moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 5 of 12 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Goodwill of ¥1,035,253 thousand arising from the acquisition of shares in セルムグループHD through an MBO, ¥44,705 thousand arising from the acquisition of shares in ヒューマンストラテジーズジャパン株式会社, and ¥2,063,955 thousand arising from the acquisition of shares in KYT Co., Ltd. was recorded.」
The purchase price allocation for KYT was completed, and goodwill is disclosed separately for the MBO, ヒューマンストラテジーズジャパン and KYT. The total balance was ¥3,143,914 thousand, and no impairment loss was recorded during the period. - 2026-05-14MitigatedEarnings
「This was mainly because goodwill included in intangible assets decreased by ¥379,794 thousand as a result of amortization.」
The goodwill balance decreased from ¥3,523,709 thousand to ¥3,143,914 thousand due to amortization. - FY2026-H1MitigatedAnnual report
「This was mainly because ¥9,654 thousand of property, plant and equipment and ¥189,897 thousand of goodwill, an intangible fixed asset, were amortized, resulting in a decrease.」
The goodwill balance declined through amortization from ¥3,523,709 thousand at the end of the previous fiscal year to ¥3,333,811 thousand. - FY2025-H1ReframedAnnual report
「As a result, the provisionally calculated goodwill of ¥170,132 thousand decreased by ¥88,849 thousand upon finalization of the accounting treatment, resulting in ¥81,282 thousand. Contract-related intangible assets of ¥135,835 thousand and deferred tax liabilities of ¥46,985 thousand included in other non-current liabilities were also newly recognized, and the contract-related intangible assets are being amortized evenly over 10 years.」
The provisional accounting treatment for the business combination with ヒューマンストラテジーズジャパン was finalized, the goodwill amount was revised, and contract-related intangible assets and deferred tax liabilities were newly recognized. The disclosure of the composition of goodwill and impairment risks has changed. - FY2024ReframedAnnual report
「As a result, as of the end of the eighth consolidated fiscal year, goodwill of ¥1,411,709 thousand arising from the acquisition of shares in セルムグループHD through an MBO and goodwill of ¥161,625 thousand arising from the acquisition of shares in ヒューマンストラテジーズジャパン株式会社 were recorded.」
Goodwill is disclosed separately between that arising from the MBO and that arising from the acquisition of ヒューマンストラテジーズジャパン, with ¥161,625 thousand of goodwill added from the new acquisition. The disclosure states that impairment recognition sensitivity is a 32.8% decline in future cash flows for the MBO-related goodwill and a 62.9% decline for the new goodwill. - FY2023WorsenedAnnual report
「As of the end of the seventh consolidated fiscal year, goodwill of ¥1,599,937 thousand was recorded. … If estimated future cash flows were to decline by 30.7%, impairment would need to be recognized, potentially resulting in an impairment loss.」
Although the goodwill balance declined, the decline in future cash flows that would trigger impairment recognition narrowed from 43.3% to 30.7%, reducing the sensitivity cushion. - FY2022MitigatedAnnual report
「As of the end of the sixth consolidated fiscal year, goodwill of ¥1,788,165 thousand was recorded. … If estimated future cash flows were to decline by 43.3%, impairment would need to be recognized, potentially resulting in an impairment loss.」
The goodwill balance declined from ¥1,976,393 thousand to ¥1,788,165 thousand, while the decline in future cash flows that would trigger impairment recognition changed from 40.4% to 43.3%. - FY2021First statedAnnual report
「As of the end of the fifth consolidated fiscal year, goodwill of ¥1,976,393 thousand was recorded.」
The disclosure states that impairment recognition may be required if estimated future cash flows decline by 40.4%.