Advancing Credit Risk Management and the Customer Support Framework
First written in FY2022-Q3. 5 of 7 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2020: 24 of 45 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「For other receivables, the probability of default is determined for each group, subdivided based on the borrower's financial information and other factors, as well as the relationship with the borrower and the level of understanding of the borrower's business, using one-year or three-year default experience as the basis, and expected loss rates calculated from the long-term average of historical probabilities of default are used to incorporate economic-cycle factors.」
The credit risk management method using borrower-group-specific probabilities of default based on relationships with borrowers and understanding of their businesses, together with long-term averages, has been reaffirmed. - FY2024-Q2RestatedAnnual report
「For other receivables, the probability of default is determined for each group, subdivided based on the borrower's financial information and other factors, as well as the relationship with the borrower and the level of understanding of the borrower's business, using one-year or three-year default experience as the basis, and expected loss rates calculated from the long-term average of historical probabilities of default are used to incorporate economic-cycle factors.」
The method of calculating the allowance for doubtful accounts using borrower-group-specific probabilities of default based on relationships with borrowers and understanding of their businesses, together with long-term averages, has been reaffirmed. - FY2023RestatedAnnual report
「Specifically, in addition to the financial information and other factors previously emphasised, the method for calculating expected losses has been changed to determine the probability of default for each group, subdivided based on the relationship with the borrower and the level of understanding of the borrower's business, using one-year or three-year default experience as the basis, and to use expected loss rates calculated from the long-term average of historical probabilities of default in order to incorporate economic-cycle factors.」
The annual report also confirms the allowance methodology using relationships with borrowers, understanding of their businesses, more granular borrower classifications, one-year or three-year default experience, and long-term averages. - FY2023-Q3RestatedAnnual report
「During the first quarter consolidated accounting period, we changed the estimation method for the allowance for doubtful accounts following completion of data analysis and preparation and the development of related internal controls. Specifically, in addition to the financial information and other factors previously emphasised, the method now determines the probability of default for each group, subdivided based on the relationship with the borrower and the level of understanding of the borrower's business, using one-year or three-year default experience as the basis, and calculates expected loss rates based on the long-term average of historical probabilities of default in order to incorporate economic-cycle factors. As a result of this change in estimate, the allowance for doubtful accounts at the end of the current third quarter consolidated accounting period decreased by ¥3,177 million, while ordinary income and profit before income taxes for the current third quarter consolidated cumulative period increased by ¥3,177 million.」
The change in the estimation method for the allowance for doubtful accounts following completion of data analysis and the development of internal controls was reaffirmed, with the reduction in the allowance at the end of the current third quarter accounting period disclosed as ¥3,177 million. - FY2023-Q2RestatedAnnual report
「During the current interim consolidated accounting period, we changed the estimates relating to the allowance for doubtful accounts following completion of data analysis and preparation and the development of related internal controls. As a result of this change in estimate, the allowance for doubtful accounts at the end of the current interim consolidated accounting period decreased by ¥3,377 million, while ordinary income and profit before income taxes for the current interim period increased by ¥3,377 million.」
The completion of data analysis and the development of internal controls and the resulting change in the allowance methodology, as described in the previous quarterly report, were reiterated, with the reduction in the allowance for doubtful accounts during the current interim consolidated accounting period disclosed as ¥3,377 million. - FY2023-Q1AdvancedAnnual report
「During the current first quarter consolidated accounting period, we changed the estimates relating to the allowance for doubtful accounts following completion of data analysis and preparation and the development of related internal controls. As a result of this change in estimate, the allowance for doubtful accounts at the end of the current first quarter consolidated accounting period decreased by ¥3,018 million, while ordinary income and profit before income taxes for the current first quarter consolidated cumulative period increased by ¥3,018 million.」
Data analysis and preparation and the development of related internal controls were completed, and the estimation method for the allowance for doubtful accounts was changed to incorporate relationships with borrowers, understanding of their businesses, more granular borrower classifications, and long-term economic fluctuations. The allowance decreased by ¥3,018 million. - FY2022-Q3First statedAnnual report
「Identifying issues and strengthening appropriate risk management and support for management improvement by advancing credit risk management and the support framework, deepening understanding of customers' businesses, and strengthening relationships, while enhancing consulting functions」
The policy is to advance credit risk management and support for customers' management improvement through understanding their businesses, strengthening relationships, and providing consulting services.