Post-M&A Contingent Liabilities and Goodwill Impairment
First written in FY2017. 1 of 2 entries say "Restated". Latest entry: FY2018.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2018RestatedAnnual report
「If issues that could not be identified through due diligence before an acquisition arise, such as contingent liabilities or previously unrecognized obligations, or if business development and other activities do not proceed as planned, the Company may need to recognize an impairment loss on goodwill. This could adversely affect the operating results and financial condition of the Company and its group.」
The risks of contingent liabilities, failure to meet plans and goodwill impairment after M&A continue to be identified. - FY2017First statedAnnual report
「If issues that could not be identified through due diligence before an acquisition arise, such as contingent liabilities or previously unrecognized obligations, or if business development and other activities do not proceed as planned, the Company may need to recognize an impairment loss on goodwill. This could adversely affect the operating results and financial condition of the Company and its group.」
The disclosure identifies the possibility of goodwill impairment and other effects resulting from liabilities identified after due diligence and failure to meet plans after an acquisition.