Shortening the Useful Lives of Fixed Assets and Increased Losses Associated with Store Closures
First written in FY2018-Q1. 4 of 8 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2024.
Three F moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 7 of 20 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Current consolidated fiscal year (from 1 March 2023 to 29 February 2024): No applicable items.」
The company disclosed that no impairment losses were recognized in the current consolidated fiscal year, compared with ¥89 million in the previous fiscal year, indicating that no losses due to declining profitability of fixed assets were recognized during the current year. - FY2023WorsenedAnnual report
「The Group groups assets primarily by store and leased property as the basic units, which are the smallest units generating cash flows. Based on this grouping, impairment accounting procedures were performed. As indications of impairment, including declining profitability of fixed assets at unprofitable stores, were identified, the Group examined future recoverability, reduced the carrying amounts to their recoverable amounts, and recognized the resulting reductions as impairment losses under extraordinary losses.」
Indications of impairment due to declining profitability were identified for fixed assets at unprofitable stores, and ¥89 million in impairment losses was recognized, up from ¥25 million in the previous fiscal year. - FY2022Recognized ¥25 million in impairment lossesAnnual report
「During the fiscal year, the Group recognized impairment losses on the following asset groups.」
Impairment losses of ¥25 million were recognized on buildings and structures, tools, furniture and fixtures, and machinery and equipment at stores. The company states that impairment losses may also need to be recognized in the following fiscal year if assumptions regarding when the COVID-19 pandemic will subside or operating performance change. - FY2019ReframedAnnual report
「Based on this grouping, impairment accounting procedures were performed. For properties whose market prices had fallen significantly, the carrying amounts were reduced to their recoverable amounts, and the resulting reductions were recognized as impairment losses under extraordinary losses.」
The charge shifted from losses caused by shortened useful lives following store closures through the previous year to ¥116 million in impairment losses on leased properties whose market prices had fallen significantly in the current year. - FY2018WorsenedAnnual report
「As a result, compared with the previous method, operating loss and ordinary loss for the current consolidated fiscal year increased by ¥479 million, while there was no impact on profit before income taxes for the year.」
The impact on operating loss and ordinary loss of shortening the useful lives of fixed assets due to store closures increased from the cumulative ¥462 million in the previous quarter to ¥479 million for the full year. - FY2018-Q3WorsenedAnnual report
「From the first quarter of the fiscal year, the useful lives of fixed assets that will become unusable due to the closure of Three F stores following the execution of a business integration agreement with Lawson, Inc. have been shortened and revised prospectively. As a result, compared with the previous method, operating loss and ordinary loss for the cumulative third quarter of the current consolidated fiscal year increased by ¥462 million, while profit before income taxes for the quarter decreased by ¥128 million.」
The cumulative impact on operating loss and ordinary loss of shortening the useful lives of fixed assets due to store closures increased from ¥382 million in the previous quarter to ¥462 million. - FY2018-Q2WorsenedAnnual report
「From the first quarter of the fiscal year, the useful lives of fixed assets that will become unusable due to the closure of Three F stores following the execution of a business integration agreement with Lawson, Inc. have been shortened and revised prospectively. As a result, compared with the previous method, operating loss and ordinary loss for the cumulative second quarter of the current consolidated fiscal year increased by ¥382 million, while profit before income taxes for the quarter decreased by ¥382 million.」
The cumulative impact on profit and loss of shortening the useful lives of fixed assets due to store closures was disclosed at a level that increased operating loss and ordinary loss by ¥382 million. - FY2018-Q1First statedAnnual report
「During the first quarter of the current consolidated fiscal year, the useful lives of fixed assets that will become unusable as a result of closing Three F stores following the execution of a business integration agreement with Lawson, Inc. were shortened and revised prospectively. As a result, compared with the previous method, operating loss, ordinary loss and quarterly net loss before income taxes for the cumulative first quarter increased by ¥188 million each.」
The Company disclosed that the useful lives of fixed assets that would become unusable following the closure of Three F brand stores were shortened, and that the resulting accounting change increased operating loss and other losses by ¥188 million.