Changes in Assumptions Used for Accounting Estimates in Light of the Impact of COVID-19
First written in FY2021-Q3. 2 of 3 entries say "Restated". Latest entry: FY2022.
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- FY2022RestatedAnnual report
「Because the sales growth rate and gross profit margin, which are key assumptions in estimating undiscounted future cash flows, involve uncertainty, impairment losses may need to be recognized in the following consolidated fiscal year if market conditions change or prolonged COVID-19 impacts result in unexpected store closures and other events.」
The company reconfirms the uncertainty in the sales growth rate and gross profit margin used in store impairment estimates arising from a prolonged infectious disease outbreak and changes in market conditions. - FY2021RestatedAnnual report
「The sales growth rate was calculated excluding the results for the current consolidated fiscal year, when sales grew more than expected due to the impact of COVID-19.」
In light of the impact of COVID-19 on operating results, the company states the assumption that the higher-than-expected sales growth recorded in the current year will be excluded when calculating the sales growth rate used in impairment estimates for store fixed assets. - FY2021-Q3First statedAnnual report
「At the end of the previous consolidated fiscal year, as described in the “Additional Information” section of the annual securities report under “Accounting estimates concerning the impact of the novel coronavirus disease,” the company assumed that the impact of COVID-19 would continue through the first half and gradually recover from the second half onward. However, in light of the continued lack of visibility on when the situation would be brought under control, including the reissuance of a state of emergency declaration primarily in major metropolitan areas in January 2021, the company revised its assumption for the current consolidated fiscal year to reflect a continuing impact, and for the following consolidated fiscal year to reflect an impact lasting for a certain period, and calculated future cash flows and other figures accordingly. This change had no impact on the quarterly consolidated financial statements.」
The assumptions used to calculate future cash flows and other figures were changed from the previous year-end assumption that the impact would continue through the first half and gradually recover thereafter, to an assumption that the impact would continue for a certain period during both the current and following consolidated fiscal years.