Impairment Risk for Business-Use Real Estate
First written in FY2022. 1 of 3 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2020: 50 of 97 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「During the current consolidated fiscal year, the company reduced the carrying amounts of asset groups among its operating assets whose income or loss from operating activities had remained negative or was expected to remain negative, to their recoverable amounts, and recorded the reduction of ¥76.283 million as an impairment loss under extraordinary losses.」
The company moved from the prior-year statement that there were no indications of impairment to actually recording impairment losses of ¥45.068 million on machinery and equipment and ¥31.215 million on land for operating assets in Ota, Gunma Prefecture. - FY2023MitigatedAnnual report
「There are currently no indications of impairment in business-use real estate. However, if asset values decline because of falling real estate fair values, lower business profitability, or other factors, this could affect our Group's financial position and operating results.」
The company continues to disclose the impairment risk for business-use real estate while explaining that there were no indications of impairment as of the end of the current fiscal year. - FY2022First statedAnnual report
「Our Group owns business-use real estate. Under impairment accounting for fixed assets, if the value of such real estate declines because of a fall in fair value or lower profitability, this could affect our Group's financial position and operating results.」
The company disclosed for the first time the impairment risk associated with falling fair values and declining profitability of business-use real estate as a separate risk.