Risk of Impairment of Goodwill and Shares in Affiliated Companies Due to Post-Acquisition Earnings Shortfalls
First written in FY2017. 7 of 9 entries say "Materialised", first in FY2017. Latest entry: FY2026.
The whole theme swung hardest in 2024: 37 of 90 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「The impairment loss on goodwill recognized during the current consolidated fiscal year arose because the consolidated subsidiary WESSEX GARAGES HOLDINGS LIMITED could no longer be expected to achieve the earnings anticipated at the time of acquisition of its shares and other transactions. The full carrying amount was recorded as an impairment loss.」
Impairment due to post-acquisition earnings falling short of plan occurred at WESSEX GARAGES HOLDINGS LIMITED, and the full carrying amount of goodwill was impaired. - FY2025MaterialisedAnnual report
「The impairment loss on goodwill recognized during the current consolidated fiscal year arose because the consolidated subsidiaries 静岡日産自動車㈱, フジモトーレン㈱ and ㈱髙垣組 could no longer be expected to achieve the earnings anticipated at the time of acquisition of their shares and other transactions. The carrying amount was therefore reduced to its recoverable amount and recorded as an impairment loss.」
Impairment due to post-acquisition earnings falling short of plan occurred at 静岡日産自動車, フジモトーレン and 髙垣組, and impairment losses totaling ¥797 million, including goodwill, were recorded. - FY2024MaterialisedAnnual report
「The impairment loss on goodwill recognized during the current consolidated fiscal year arose because the consolidated subsidiaries CATERHAM CARS GROUP LIMITED and ㈱モトーレン三河 could no longer be expected to achieve the earnings anticipated at the time of acquisition of their shares and other transactions. The full carrying amount was recorded as an impairment loss.」
Impairment due to post-acquisition earnings falling short of plan occurred at CATERHAM CARS GROUP LIMITED and ㈱モトーレン三河, and the full carrying amount of goodwill was impaired. Impairment losses for the year totaled ¥1,058 million. - FY2021ReframedAnnual report
「The impairment loss on goodwill recognized during the current consolidated fiscal year arose because 連結子会社である株式会社日産サティオ埼玉、エフエルシー株式会社、SKY ABSOLUT AUTO (PTY) LTD. could no longer be expected to achieve the earnings anticipated when their shares were acquired. The carrying amount of goodwill was therefore reduced to its recoverable amount.」
While total impairment losses decreased from ¥1,751 million in the previous fiscal year to ¥1,071 million, the companies subject to impairment changed from WESSEX to 日産サティオ埼玉, エフエルシー and SKY ABSOLUT AUTO, and impairment due to post-acquisition earnings falling short of plan continued. - FY2020MaterialisedAnnual report
「In addition, impairment losses totaling ¥1,751 million were recorded on store equipment, goodwill and other assets held by certain less profitable subsidiaries, taking into consideration their recoverable amounts and other factors.」
Impairment losses increased from ¥945 million in the previous fiscal year to ¥1,751 million. The disclosure also describes an impairment of goodwill at WESSEX GARAGES HOLDINGS LIMITED because the earnings anticipated at the time of acquisition could no longer be expected. - FY2019MaterialisedAnnual report
「Meanwhile, impairment losses of ¥945 million were recorded for 3 consolidated subsidiaries because their performance fell below the initial plan and their financial condition deteriorated. The impairment losses comprised ¥619 million on goodwill and ¥326 million on fixed assets.」
The impairment risk resulting from post-acquisition earnings falling short of plan materialized during the year, and total impairment losses of ¥945 million were recorded for 3 consolidated subsidiaries. The companies identified were ㈱日産サティオ奈良, SCOTTS MOTORS ARTARMON and TRUST ABSOLUT AUTO. - FY2017MaterialisedAnnual report
「The carrying amount was reduced to the recoverable amount and recorded as an impairment loss under extraordinary losses.」
The disclosure describes impairment risk due to declining profitability at subsidiary stores and post-acquisition earnings falling short of plan, and ¥89 million in impairment losses on buildings, land, leased assets and other assets was recorded during the current consolidated fiscal year.