Goodwill Impairment Risk Related to Real Estate M&A
First written in FY2023. . Latest entry: FY2026.
The whole theme swung hardest in 2023: 35 of 98 companies on the "Worse" side.
18 other companies' latest entry also says "Other".
- FY2026No Indications of ImpairmentAnnual report
「No indications of goodwill impairment were identified during the consolidated fiscal year.」
We explained that goodwill related to the real estate M&A amounted to ¥554.665 million and that no indication of impairment had been identified during the fiscal year. - FY2026-H1Additional Goodwill Recognised in Connection with the Acquisition of SwanStyleAnnual report
「In the Real Estate Business segment, SwanStyle株式会社 became a consolidated subsidiary during the interim consolidated accounting period. The resulting increase in goodwill was ¥47.810 million for the interim consolidated accounting period. The goodwill amount was calculated provisionally because the allocation of the acquisition cost had not been completed as of the end of the interim consolidated accounting period.」
We additionally recognised provisional goodwill of ¥47.810 million upon making SwanStyle a consolidated subsidiary. No impairment loss was reported. - FY2025Increase in Goodwill Balance, with No Indications of ImpairmentAnnual report
「No indications of goodwill impairment were identified during the consolidated fiscal year.」
Goodwill increased from ¥452 million to ¥557 million through making イストグループ a consolidated subsidiary and other transactions, while no indication of impairment was identified during the fiscal year. - FY2025-H1Additional Goodwill RecognisedAnnual report
「Amount of goodwill recognised: ¥190.034 million. The amount of goodwill recognised was calculated provisionally because the allocation of the acquisition cost had not been completed as of the end of the interim consolidated accounting period.」
We provisionally recognised ¥190.034 million of goodwill upon making イストグループ a consolidated subsidiary. The purchase price allocation was incomplete, and no impairment loss was reported for the interim period. - FY2024No Indications of ImpairmentAnnual report
「No indications of goodwill impairment were identified during the consolidated fiscal year.」
We explained that goodwill had been amortised to ¥452.015 million at the end of the fiscal year and that no indication of impairment had been identified during the fiscal year. - FY2024-Q3Finalisation of Goodwill AmountAnnual report
「Upon finalisation of this provisional accounting treatment, a material revision to the initial allocation of the acquisition cost was reflected in the comparative information included in the consolidated quarterly financial statements for the cumulative third quarter. As a result, the provisionally calculated goodwill decreased by ¥791.644 million from ¥1,318.995 million to ¥527.351 million.」
The provisional accounting treatment for goodwill arising from the real estate M&A was finalised, and goodwill was revised from ¥1,318.995 million to ¥527.351 million. No impairment loss was reported. - FY2023First statedAnnual report
「If it is determined that a significant divergence from the business plan has arisen and the excess earning power has been impaired, this would constitute an indication of impairment and could require an impairment loss assessment.」
We recorded ¥527.351 million of goodwill in connection with real estate M&A and newly disclosed the impairment risk in the event of a significant divergence from the business plan or impairment of excess earning power.