Risk of Delayed Development and Fixed-Asset Impairment in the ECOALF Business
First written in FY2022. 1 of 2 entries say "Materialised", first in FY2023. Latest entry: FY2023.
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- FY2023MaterialisedAnnual report
「For the ECOALF business, the Group reduced the carrying amount to its recoverable amount because, following a revision of the business plan in light of the impact of COVID-19 and other factors, the earnings capacity assumed under the original business plan was no longer expected to be achieved. The resulting reduction of ¥439 million was recognized as an impairment loss and recorded under extraordinary losses.」
The disclosure states that the ECOALF business no longer had expected earnings capacity following the revision of its business plan in light of the pandemic and other factors, and that an impairment loss of ¥439 million was actually recognized. - FY2022First statedAnnual report
「The ECOALF business has been identified as showing indications of impairment because its business rollout was delayed by the impact of COVID-19 and other factors, and the business plan was substantially revised during the current consolidated fiscal year in light of progress to date against the original plan. However, because total undiscounted future cash flows exceeded the carrying amount of the fixed assets, the Group determined that recognition of an impairment loss was unnecessary.」
The ECOALF business showed indications of impairment due to the delayed rollout and substantial revision of its business plan, but no impairment loss was recognized because future cash flows exceeded the carrying amount. The disclosure also describes uncertainty in assumptions, including new store openings, EC expansion and the timing of the end of the pandemic.