Credit Risk Relating to Trade Receivables and Long-Term Loans Receivable
First written in FY2017. 3 of 5 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2023: 9 of 34 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2021RestatedAnnual report
「When extending credit, we regularly check customers' financial condition and seek to minimize credit risk by obtaining collateral or guarantees and taking out insurance as necessary. However, there is a possibility that trade receivables may become uncollectible, for example if a customer for which these receivables-protection measures have not been taken goes bankrupt.」
The company continues to pursue a policy of checking customers' credit standing and controlling credit risk through collateral, guarantees and insurance. - FY2020RestatedAnnual report
「When extending credit, the company regularly checks customers' financial condition and works to minimize credit risk by obtaining collateral or guarantees and taking out insurance as necessary. However, trade receivables may become uncollectible if a customer for which such receivables protection measures have not been taken becomes insolvent. The company also anticipates possible difficulties in procuring raw materials and merchandise on a stable basis due to concerns about suppliers' creditworthiness.」
In addition to the risk of being unable to collect receivables due to customer bankruptcies, the company continues to recognize procurement uncertainty arising from suppliers' credit concerns and to address these risks by checking financial conditions and obtaining collateral, guarantees and insurance. - FY2019ReframedAnnual report
「In conducting its business, the group extends credit to numerous domestic and overseas customers, creating the possibility that trade receivables may become uncollectible if customers become insolvent. It also anticipates that difficulties in procuring raw materials and merchandise on a stable basis may arise due to concerns about suppliers' creditworthiness, potentially affecting business performance.」
In addition to the traditional collection risk associated with trade receivables, procurement risks involving raw materials and merchandise due to suppliers' credit concerns were explicitly identified as part of the same credit risk. - FY2018RestatedAnnual report
「Notes and accounts receivable, which are trade receivables, are exposed to customers' credit risk, but the company works to mitigate this risk in accordance with its credit management rules.」
The policy of recognizing customer credit risk and working to mitigate it through credit management rules and monitoring customers' status, payment dates and outstanding balances has continued. - FY2017First statedAnnual report
「Notes and accounts receivable, which are trade receivables, are exposed to customers' credit risk, but the company works to mitigate this risk in accordance with its credit management rules.」
The company recognizes credit risk arising from customer defaults and other events and works to reduce it by monitoring customers' status, payment dates and outstanding balances, and identifying collection concerns at an early stage.