Credit deterioration and bad-debt risk involving a major debtor
First written in FY2021. 4 of 8 entries say "Worsened", first in FY2022. Latest entry: FY2024-Q2.
Kaga Electronics moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 10 of 65 companies on the "Worse" side.
49 other companies' latest entry also says "Worsened".
- FY2024-Q2WorsenedAnnual report
「Operating profit was affected not only by a decrease in gross profit associated with lower sales, but also by approximately ¥400 million in factors including provisions for doubtful accounts related to the commencement of civil rehabilitation proceedings by a Group customer, which had been recognized since the first quarter.」
The impact of provisions for doubtful accounts and other items related to a customer that filed a petition to commence civil rehabilitation proceedings continued to affect operating profit in the second-quarter cumulative period, following the first quarter. - FY2024-Q1WorsenedAnnual report
「Following a customer's petition to commence civil rehabilitation proceedings, valuation losses and provisions for doubtful accounts were recognized for inventories and trade receivables related to that customer.」
Regarding the credit and collection risk of a major customer receivable disclosed since the previous fiscal year, the customer's petition to commence civil rehabilitation proceedings led to a valuation loss being recognized not only for trade receivables but also for related inventories. - FY2023WorsenedAnnual report
「Total receivables 2,256 6,570 Allowance for doubtful accounts 1,868 4,387」
Receivables from ユーロテック increased from ¥225.6 million to ¥657.0 million, and the allowance for doubtful accounts increased from ¥186.8 million to ¥438.7 million. The company disclosed its estimate of recoverability based on the civil rehabilitation plan and the possibility of additional losses from the following fiscal year onward. - FY2022Expanded inventory valuation and bad-debt estimates following the commencement of civil rehabilitation proceedings by a major customer receivableAnnual report
「During the consolidated fiscal year, ユーロテック filed a petition to commence civil rehabilitation proceedings under the Civil Rehabilitation Act. Accordingly, estimates were made not only for receivables from ユーロテック, but also for inventories related to transactions for which orders had been received from ユーロテック, as set out below.」
Following the commencement of civil rehabilitation proceedings by a major customer receivable, an allowance for doubtful accounts of ¥186.8 million was recognized against total receivables of ¥225.6 million, and an inventory valuation loss of ¥180.9 million was recognized against related inventories of ¥224.3 million. - FY2022-Q3Additional provision for doubtful accounts recognizedAnnual report
「Provision for doubtful accounts — 175」
A provision for doubtful accounts of ¥17.5 million was recognized in the third-quarter cumulative consolidated period, and loss recognition related to the credit and collection risk of a major customer receivable continued. - FY2022-Q2Recognition of a provision for doubtful accountsAnnual report
「Provision for doubtful accounts — 131」
A provision for doubtful accounts of ¥13.1 million was recognized in the second-quarter cumulative consolidated period, and loss recognition related to the credit and collection risk of a major customer receivable continued. - FY2022-Q1MaterialisedAnnual report
「Provision for doubtful accounts — 281」
A provision for doubtful accounts of ¥28.1 million was recognized in the first-quarter cumulative consolidated period, and loss recognition related to the credit and collection risk of a major customer receivable continued. quantified=true, materialized=true - FY2021First statedAnnual report
「For the receivable in question, the estimated uncollectible amount was recognized as an allowance for doubtful accounts using the cash-flow estimation method.」
For one major customer receivable, total receivables of ¥430.7 million, an allowance for doubtful accounts of ¥175.0 million, and a provision for doubtful accounts of ¥175.0 million were recognized. Estimating recoverability as a receivable at risk of default is a significant accounting issue.