Recognition of non-operating expense (provision for allowance for doubtful accounts)
The Group (NICHIRYOKU CO.,LTD.)
Security deposits (related to the development of cemeteries and columbaria under contracts with temples and other facilities)
To reflect the decline in economic value associated with the lengthening collection period for security deposits
¥101.881 million (non-operating expense and provision for allowance for doubtful accounts)
First quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026)
Reflected in the First-Quarter Financial Results Summary for the Fiscal Year Ending March 2027 [Japanese GAAP] (Consolidated), released today. If it becomes likely that the matter will have a material impact on consolidated results, the Company will disclose the information promptly.
If it becomes likely that the matter will have a material impact on the Group's consolidated results, the Company will disclose the information promptly.
If it becomes likely that the matter will have a material impact, the Company will disclose the information promptly.
| Item | Details |
|---|---|
| Event name | Recognition of non-operating expense (provision for allowance for doubtful accounts) |
| Date of occurrence | Recorded in the first quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026). The specific date of occurrence is Not disclosed |
| Subject Entity | The Group (NICHIRYOKU CO.,LTD.) |
| Target Locations / Products | Security deposits (related to the development of cemeteries and columbaria under contracts with temples and other facilities) |
| Cause | To reflect the decline in economic value associated with the lengthening collection period for security deposits |
| Amount of Impact on Business Performance | ¥101.881 million (non-operating expense and provision for allowance for doubtful accounts) |
| Accounting period in which recognized | First quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026) |
| Impact on Earnings Forecast | Reflected in the First-Quarter Financial Results Summary for the Fiscal Year Ending March 2027 [Japanese GAAP] (Consolidated), released today. If it becomes likely that the matter will have a material impact on consolidated results, the Company will disclose the information promptly. |
| Outlook | If it becomes likely that the matter will have a material impact on the Group's consolidated results, the Company will disclose the information promptly. |
| Planned follow-up disclosure | If it becomes likely that the matter will have a material impact, the Company will disclose the information promptly. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because security deposits have the characteristic of being collected over a long period, the Company calculated their present value based on the amount expected to be collected in the future to reflect the decline in economic value associated with the lengthening collection period, and recorded the difference as a provision for allowance for doubtful accounts.