Risk of principal loss from early withdrawal of long-term deposits
First written in FY2017. 2 of 6 entries say "Restated". Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025First statedAnnual report
「All long-term deposits are term deposits with an early-termination option (multi-callable term deposits), which may be terminated at any time, potentially preventing the Company from receiving the interest income expected in the future.」
The Company holds ¥900 million in long-term deposits and has again disclosed as a risk the possibility that it may be unable to receive future interest income under the early-termination option. - FY2019DroppedAnnual reportIn the current full-year report, no specific disclosure could be identified regarding the risk of principal impairment due to early termination of long-term deposits.
- FY2018-Q3RestatedAnnual report
「The bank alone holds the right to terminate the deposits early. If the Company terminates them, it must pay the settlement amount prescribed by the bank. The deposits that may result in impairment of the principal are as follows.」
The risk of deposit principal impairment due to early termination continues to be disclosed. The amount subject to the risk is ¥600 million in cash and deposits, while long-term deposits are zero. - FY2018-Q2MitigatedAnnual report
「The bank alone holds the right to terminate the deposits early. If the Company terminates them, it must pay the settlement amount prescribed by the bank. The deposits that may result in impairment of the principal are as follows.」
With respect to assets subject to the risk of principal impairment due to early termination, cash and deposits amounted to ¥600 million, while long-term deposits fell to zero from ¥600 million at the end of the previous consolidated fiscal year. - FY2018-Q1RestatedAnnual report
「The bank alone holds the right to terminate the deposits early. If the Company terminates them, it must pay the settlement amount prescribed by the bank. The deposits that may result in impairment of the principal are as follows.」
The risk of impairment of deposit principal due to settlement charges on early termination continues to be disclosed, covering cash and deposits of ¥600 million and long-term deposits of ¥600 million. - FY2017First statedAnnual report
「The bank alone holds the right to terminate the long-term deposits early. If the Company terminates them, the derivative component attached to the deposits may incur a loss.」
The Company states that terminating long-term deposits early may impair the deposit principal due to losses on the attached derivative component.