Goodwill impairment risk
First written in FY2022. 2 of 3 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2019: 5 of 12 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「There is a risk of impairment if the key assumptions used in the impairment test for the fiscal year change. However, the recoverable amount exceeds the carrying amount of the cash-generating unit or group of cash-generating units, and the company considers it unlikely that the recoverable amount would fall below the carrying amount even if the key assumptions used in the impairment test change within a reasonably foreseeable range.」
Goodwill of ¥11,608 million was maintained, with no impairment loss recognized. The explanation has changed to state that the recoverable amount exceeds the carrying amount and that impairment is unlikely even if assumptions change within a reasonably foreseeable range. - FY2025MitigatedAnnual report
「At the end of the fiscal year, the estimated recoverable amount exceeded the carrying amount of the assets in the cash-generating unit group containing goodwill by ¥21,076 million. However, the recoverable amount and carrying amount could become equal if the pre-tax discount rate rises by 9.3% or the estimated future cash flows for each period decline by 49.5%.」
Headroom in the goodwill impairment test expanded from ¥6,585 million to ¥21,076 million, while the sensitivity at which the recoverable amount and carrying amount would become equal improved from a 3.8% increase in the discount rate or a 24.8% decline in cash flows to 9.3% and 49.5%, respectively. - FY2022First statedAnnual report
「At the end of the fiscal year, the estimated recoverable amount exceeded the carrying amount of the assets in the cash-generating unit group containing goodwill by ¥19,457 million. However, the recoverable amount and carrying amount could become equal if the pre-tax discount rate rises by 10.4% or the estimated future cash flows for each period decline by 47.2%.」
For the cash-generating unit containing ¥11,608 million of goodwill, the company disclosed that the recoverable amount and carrying amount would become equal if the discount rate rose by 10.4% or future cash flows declined by 47.2%.