Uncertainty in Impairment Estimates Due to COVID-19 and Other Factors
First written in FY2022. 5 of 8 entries say "Restated". Latest entry: FY2025.
Three F moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 3 of 13 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「Estimates of undiscounted future cash flows used to determine whether an impairment loss should be recognized are prepared based on the business plan for the following fiscal year approved by the Board of Directors, incorporating the store-specific economic conditions of each store and leased property as key assumptions. These assumptions may be affected by changes in uncertain future economic conditions, and if actual operating performance differs from the estimates, the recognition of an impairment loss could have a material impact on the consolidated financial statements for the following consolidated fiscal year.」
The explanation of uncertainty in impairment estimates has been reorganized from the previous focus on when the COVID-19 pandemic would subside to general estimation risks centered on the business plan for the following fiscal year approved by the Board of Directors, the economic conditions of each store and leased property, and changes in future economic conditions. - FY2024-Q3RestatedAnnual report
「There have been no material changes in the assumptions regarding the impact of COVID-19 described in the “Significant Accounting Estimates” section of the previous fiscal year’s securities report.」
The company continues to explain that there have been no significant changes from the previous fiscal year in the accounting estimates based on assumptions about when the COVID-19 pandemic will subside, etc. - FY2024-Q2RestatedAnnual report
「There have been no material changes in the assumptions regarding the impact of COVID-19 described in the “Significant Accounting Estimates” section of the previous fiscal year’s securities report.」
The company continues to explain that there have been no significant changes from the previous fiscal year in the accounting estimates based on assumptions about when the COVID-19 pandemic will subside, etc. - FY2024-Q1RestatedAnnual report
「There have been no material changes in the assumptions regarding the impact of COVID-19 described in the “Significant Accounting Estimates” section of the previous fiscal year’s securities report.」
The company states that there have been no significant changes from the previous fiscal year in the accounting estimates based on assumptions about when the COVID-19 pandemic will subside, etc. - FY2023WorsenedAnnual report
「Regarding assumptions about when the COVID-19 pandemic will subside, there is uncertainty over future spread of infections and consumer trends. However, the Group has calculated future cash flows on the assumption that conditions will largely stabilize from the fiscal year ending February 2024 onward.」
The assumed timing of normalization used in impairment testing has been pushed back from during the fiscal year ending February 2023 to the fiscal year ending February 2024 onward, indicating that uncertainty is becoming more prolonged. - FY2023-Q3RestatedAnnual report
「There have been no material changes in the assumptions regarding the impact of COVID-19 described in the “Significant Accounting Estimates” section of the previous fiscal year’s securities report.」
The company states that there have been no significant changes from the previous fiscal year in the accounting estimates based on assumptions about when the COVID-19 pandemic will subside, etc. - FY2023-Q1RestatedAnnual report
「There have been no material changes in the assumptions regarding the impact of COVID-19 described in the “Significant Accounting Estimates” section of the previous fiscal year’s securities report.」
The company states that there have been no significant changes from the previous fiscal year in the accounting estimates based on assumptions about when the COVID-19 pandemic will subside, etc. - FY2022First statedAnnual report
「Regarding assumptions about when the COVID-19 pandemic will subside, there is uncertainty over future spread of infections, the timing of containment, and the market and consumer trends after containment. However, the Group has calculated future cash flows on the assumption that the situation will largely normalize during the fiscal year ending February 2023. If the assumptions used in these estimates need to be revised due to the spread of COVID-19 or deterioration in the operating environment, the Group may recognize an impairment loss in the following consolidated fiscal year.」
For future cash flows used in impairment testing, the company assumes normalization during the fiscal year ending February 2023, but identifies as a risk the possibility of recognizing additional impairment losses in the following fiscal year due to uncertainty over infection trends and market and consumer behavior.