Risk of Declines in the Valuation of High-Value Works of Art and Foreign Exchange Fluctuations
First written in FY2016. 9 of 22 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2026.
Art Vivant moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
36 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Although merchandise and finished goods decreased by ¥1,900 million as a result of sales of high-value artworks and other factors, cash and deposits increased by ¥3,326 million as a result of sales of high-value artworks, investment securities and other assets.」
Merchandise and finished goods decreased by ¥1,900 million as a result of sales of high-value artworks, falling from ¥7,171 million at the end of the previous fiscal year to ¥5,270 million. Exposure to artwork inventory has declined. - FY2026-H1MitigatedAnnual report
「Foreign exchange losses 111,409 1,165」
Foreign exchange losses decreased from ¥111.409 million in the same period of the previous year to ¥1.165 million. The balance of merchandise and finished goods also decreased from ¥7,171.403 million at the end of the previous fiscal year to ¥7,014.979 million. - FY2025WorsenedAnnual report
「Inventory valuation loss (cost of sales) 619,897 735,416」
The inventory valuation loss, including losses on high-value artworks and other items, increased from ¥619.897 million in the previous fiscal year to ¥735.416 million. Artwork inventory stood at ¥7,171.403 million, and the risk of declining valuations continues to be reflected in the results. - FY2025-H1MaterialisedAnnual report
「Foreign exchange losses － 111,409」
Foreign exchange losses of ¥111.409 million were recorded, demonstrating the realization of foreign exchange risk in the results. - FY2024WorsenedAnnual report
「This was mainly due to merchandise and finished goods increasing by ¥1,924 million as a result of purchases of high-value artworks and accounts receivable increasing by ¥424 million as a result of higher transaction volume in the installment credit business and other factors.」
Merchandise and finished goods increased by ¥1,924 million as a result of purchases of high-value artworks, bringing the balance at period-end to ¥7,629 million. The inventory valuation loss also increased from ¥398.484 million in the previous fiscal year to ¥619.897 million. - FY2024-Q3WorsenedAnnual report
「This was due mainly to merchandise and finished goods increasing by ¥943 million as a result of purchases of high-value artworks.」
Merchandise and finished goods increased by ¥943 million as a result of purchases of high-value artworks, bringing the balance at period-end to ¥6,649 million. Exposure to artwork inventory intended for future sale has expanded from the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「This was mainly due to cash and deposits increasing by ¥1,246 million as a result of the sale of investment securities, merchandise and finished goods increasing by ¥542 million as a result of purchases of high-value artworks, accounts receivable increasing by ¥363 million as a result of higher transaction volume in the credit business, and other current assets increasing by ¥681 million.」
Merchandise and finished goods increased by ¥542 million, from ¥5,705 million at the end of the previous fiscal year to ¥6,247 million, as a result of purchases of high-value artworks, expanding exposure to artwork inventory. - FY2024-Q1WorsenedAnnual report
「This was mainly due to cash and deposits increasing by ¥1,562 million as a result of the sale of investment securities and merchandise and finished goods increasing by ¥492 million as a result of purchases of high-value artworks.」
Merchandise and finished goods increased by ¥492 million as a result of purchases of high-value artworks, expanding exposure to artwork inventory from the end of the previous fiscal year. - FY2023Slight increase in artwork inventoryAnnual report
「Merchandise and finished goods 5,693,018 5,705,212」
The balance of merchandise and finished goods increased from ¥5,693 million at the end of the previous fiscal year to ¥5,705 million, with exposure to artwork inventory remaining at a high level. - FY2023-Q3WorsenedAnnual report
「Merchandise and finished goods 5,693,018 5,841,092」
The balance of merchandise and finished goods increased from ¥5,693 million at the end of the previous consolidated fiscal year, expanding exposure to artwork inventory. - FY2023-Q2Increase in merchandise and finished goodsAnnual report
「Merchandise and finished goods 5,693,018 5,802,211」
The balance of merchandise and finished goods increased by ¥109 million, from ¥5,693 million at the end of the previous consolidated fiscal year to ¥5,802 million. No valuation loss on high-value artworks is mentioned. - FY2023-Q1WorsenedAnnual report
「This was mainly due to merchandise and finished goods increasing by ¥222 million as a result of purchases of high-value artworks and accounts receivable increasing by ¥389 million as a result of an increase in new advances in the credit business, while cash and deposits decreased by ¥1,028 million due to the redemption of corporate bonds and payment of corporate taxes and other taxes.」
Merchandise and finished goods increased by ¥222 million as a result of purchases of high-value artworks, expanding exposure to artwork inventory. - FY2022WorsenedAnnual report
「Merchandise and finished goods increased by ¥818 million, accounts receivable by ¥695 million, and cash and deposits by ¥441 million. The increase in merchandise and finished goods was due to purchases of high-value artworks.」
Merchandise and finished goods increased by ¥818 million as a result of purchases of high-value artworks, bringing the balance at period-end to ¥5,693 million. Exposure to artwork inventory intended for future sale has expanded. - FY2022-Q3WorsenedAnnual report
「Current assets at the end of the third quarter of the current consolidated fiscal year were ¥26,393 million, an increase of ¥3,367 million from the end of the previous consolidated fiscal year. This was mainly due to cash and deposits increasing by ¥856 million, merchandise and finished goods by ¥1,004 million, accounts receivable by ¥745 million, and other current assets by ¥710 million.」
Merchandise and finished goods increased by ¥1,004 million from the end of the previous consolidated fiscal year, further expanding inventory exposure from the previous report. - FY2022-Q2Increase in inventory from purchases of contemporary artAnnual report
「This was mainly due to cash and deposits increasing by ¥1,624 million as a result of short-term borrowings and other factors, accounts receivable increasing by ¥650 million, and merchandise and finished goods increasing by ¥519 million as a result of purchases of contemporary artworks and other items.」
Merchandise and finished goods increased by ¥519 million as a result of purchases of contemporary artworks and other items, expanding the Group's exposure to artwork inventory. No inventory valuation loss is mentioned. - FY2022-Q1Increase in high-value artwork inventoryAnnual report
「This was mainly due to merchandise and finished goods increasing by ¥569 million as a result of purchases of high-value artworks, and accounts receivable increasing by ¥414 million as a result of an increase in new advances in the credit business.」
The disclosure states that merchandise and finished goods increased by ¥569 million as a result of purchases of high-value artworks. It does not mention an inventory valuation loss. - FY2021RestatedAnnual report
「The Group's principal products are prints by contemporary and emerging artists from the United States, Europe, China, Japan and elsewhere, and some transactions are denominated in foreign currencies. Foreign exchange fluctuations could affect the Group's results.」
The disclosure continues to identify foreign exchange risk associated with the purchase of overseas art and foreign-currency-denominated transactions, as well as the risk of declines in the fair value of artworks. - FY2020RestatedAnnual report
「To diversify its business, the Group focuses on art from around the world and purchases paintings and artworks intended for future sale. However, a decline in winning bid prices, including declines in fair value, in the event of economic instability and foreign exchange fluctuations could affect the Group's results.」
The risk that declines in winning bid prices and fair value, as well as foreign exchange fluctuations, could affect results for artworks intended for future sale continues to be disclosed. - FY2019RestatedAnnual report
「To diversify its business, the Group focuses on art from around the world and purchases paintings and artworks intended for future sale. However, a decline in winning bid prices, including declines in fair value, in the event of economic instability and foreign exchange fluctuations could affect the Group's results.」
The disclosure continues to identify the risk that declines in winning bid prices and fair value, as well as foreign exchange fluctuations, could affect results for artworks intended for future sale. - FY2016MaterialisedAnnual report
「Operating profit was ¥44 million, down 84.2% year on year, due to losses from the revaluation of merchandise, including the effects of the stronger yen and other foreign exchange movements, which arose from purchases of high-value artworks intended for future sale and were recorded in cost of sales.」
Losses on the revaluation of high-value artworks were actually incurred, with an inventory valuation loss of ¥338.626 million disclosed.