Permitting and Approval Risks in Cemetery and Indoor Mausoleum Development
First written in FY2016. 2 of 4 entries say "Materialised", first in FY2018. Latest entry: FY2020-Q2.
Nichiryoku moved to the "Worse" side of this theme in 2018.
1 other company's latest entry also says "Materialised".
- FY2020-Q2MaterialisedAnnual report
「Loss on cancellation of cemetery development 6,429」
A loss of ¥6.429 million resulting from the cancellation of a cemetery development project was recorded as an extraordinary loss, providing additional evidence of risks related to development approvals and recovery. - FY2018MaterialisedAnnual report
「In light of the extremely difficult circumstances surrounding the acquisition of development approval for the cemetery development investment project, and from the perspective of maintaining financial soundness, we considered changing the use of the investment, including selling the development site in Totsuka-ku, Yokohama. After rigorously and conservatively examining the timing and likelihood of recovery, we recorded the estimated valuation loss of ¥408 million as an expense for the provision for valuation losses on cemetery development as an extraordinary loss.」
The difficulty of obtaining development approval resulted in an actual change in the investment use, a reassessment of recoverability, and a ¥408 million expense for the provision for valuation losses. - FY2017RestatedAnnual report
「Because cemetery and columbarium operations are limited to nonprofit entities such as religious corporations and are subject to a licensing and approval system, it generally takes several years from obtaining approval to commencing construction and sales.」
It reiterates the risk that cemetery and indoor mausoleum development requires operations by religious corporations or similar entities and the necessary licenses and approvals, and that a long period may be required from obtaining approval to commencing sales. - FY2016First statedAnnual report
「Because cemetery and columbarium operations are limited to nonprofit entities such as religious corporations and are subject to a licensing and approval system, it generally takes several years from obtaining approval to commencing construction and sales.」
It states that regulatory amendments and delays in or failure to obtain licenses and approvals could affect the period from the start of development to the commencement of sales and the earnings outlook.