Obsolescence and Valuation Losses on Software Assets Due to Technological Innovation
First written in FY2021. 6 of 9 entries say "Restated". Latest entry: FY2025-H1.
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
2 other companies' latest entry also says "Reframed".
- FY2025-H1ReframedAnnual report
「In addition, decisions on important software investments and reassessments of value are made at the Budget Committee after comprehensive periodic consideration of market trends, the feasibility of recovering invested capital and other factors.」
The body responsible for investment decisions and asset valuations relating to the risks of software asset obsolescence and impairment losses is described as the Budget Committee rather than the management meeting used previously. - FY2024-Q3RestatedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
Continued addressing the risks of software asset obsolescence, declining profitability and recognition of impairment losses, as well as gathering and analyzing the latest information, improving software, and deliberating on investments and asset valuations at management meetings. - FY2024-Q2RestatedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
Continued addressing the risks of software asset obsolescence, declining profitability and recognition of impairment losses, as well as gathering and analyzing the latest information, improving software, and deliberating on investments and asset valuations at management meetings. - FY2023-Q2RestatedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
Continued identifying the risks of software asset obsolescence, declining profitability and recognition of impairment losses. - FY2023-Q1RestatedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
Continued identifying the risks of software asset obsolescence, declining profitability and recognition of impairment losses. - FY2022-Q3RestatedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
Continued identifying the risks of software asset obsolescence, declining profitability and recognition of impairment losses. - FY2022-Q2RestatedAnnual report
「As measures against these risks, we are working to gather and analyze the latest information and improve software and other assets in response to technological innovation and changes in new needs.」
Continued gathering and analyzing the latest information and improving software as measures against the risks of software asset obsolescence and impairment losses. - FY2022-Q1MitigatedAnnual report
「As measures against these risks, we are working to gather and analyze the latest information and improve software and other assets in response to technological innovation and changes in new needs. Important software investments and reassessments of value are decided at management meetings after comprehensive periodic deliberations on market trends, the feasibility of recovering invested capital and other factors.」
Presented gathering and analyzing the latest information, improving software, and deliberations on investments and asset valuations at management meetings as specific measures against the risks of software asset obsolescence and impairment losses. - FY2021First statedAnnual report
「However, if software becomes obsolete as new services spread due to rapid changes in the environment and technological innovation, causing profitability to decline substantially, it will be necessary to reassess the value of the assets. Depending on the circumstances, the assets may be subject to impairment losses, which could affect business performance.」
For the first time, separately identified the obsolescence and declining profitability of software assets held, maintained and managed internally, and the potential recognition of impairment losses, as risks distinct from the obsolescence risk of existing products and services.