Risk of Guarantee Obligations Due to a Decline in the Employee Stock Ownership Trust’s Share Price
First written in FY2021-Q2. 4 of 7 entries say "Restated". Latest entry: FY2023-Q3.
31 other companies' latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「Because the employee stock ownership trust has terminated, no borrowings were recorded at the end of the third quarter of the current consolidated fiscal period. (¥337 million at the end of the previous consolidated fiscal year)」
Following the termination of the employee stock ownership trust, borrowings subject to the guarantee declined from ¥337 million at the end of the previous consolidated fiscal year to none, eliminating the Bank's exposure to guarantee liability risk associated with a decline in the share price. - FY2023-Q2MitigatedAnnual report
「3. Carrying amount of borrowings recognized through application of the gross method The carrying amount of borrowings recognized through application of the gross method was ¥337 million at the end of the previous consolidated fiscal year and ¥187 million at the end of the interim consolidated fiscal period.」
The carrying amount of borrowings related to the employee stock ownership trust declined from ¥337 million to ¥187 million, reducing the balance guaranteed by the Bank. The guarantee liability risk itself continues. - FY2023-Q1RestatedAnnual report
「The Bank has guaranteed borrowings taken out by the employee stock ownership trust to acquire the Bank's shares. Accordingly, if the Bank's share price declines, an amount equivalent to losses on share sales accumulates in the trust and borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the Bank will repay the outstanding borrowings under the guarantee agreement.」
The Bank's guarantee liability risk in connection with borrowings of the employee stock ownership trust continues to be disclosed. The carrying amount of borrowings at the end of the first quarter was ¥337 million. - FY2022RestatedAnnual report
「The Bank has guaranteed borrowings taken out by the employee stock ownership trust to acquire the Bank's shares. Accordingly, if the Bank's share price declines, an amount equivalent to losses on share sales accumulates in the trust and borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the Bank will repay the outstanding borrowings under the guarantee agreement.」
Guarantee liability risk associated with a decline in the share price of the employee stock ownership trust continues to be disclosed. - FY2022-Q2RestatedAnnual report
「The Bank has guaranteed borrowings taken out by the employee stock ownership trust to acquire the Bank's shares. Accordingly, if the Bank's share price declines, an amount equivalent to losses on share sales accumulates in the trust and borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the Bank will repay the outstanding borrowings under the guarantee agreement.」
The Bank's guarantee liability risk in connection with borrowings of the employee stock ownership trust continues to be disclosed. The carrying amount of borrowings at the end of the interim period was ¥491 million. - FY2021-Q3RestatedAnnual report
「The Bank has guaranteed borrowings taken out by the employee stock ownership trust to acquire the Bank's shares. Accordingly, if the Bank's share price declines, an amount equivalent to losses on share sales accumulates in the trust and borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the Bank will repay the outstanding borrowings under the guarantee agreement.」
The Bank's guarantee liability risk in connection with borrowings of the employee stock ownership trust was disclosed again. The disclosure does not state that losses equivalent to the decline in the share price or repayment by the Bank actually occurred. - FY2021-Q2First statedAnnual report
「The Bank has guaranteed borrowings taken out by the employee stock ownership trust to acquire the Bank's shares. Accordingly, if the Bank's share price declines, an amount equivalent to losses on share sales accumulates in the trust and borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the Bank will repay the outstanding borrowings under the guarantee agreement.」
The Bank disclosed for the first time the risk that it may have to repay borrowings guaranteed in connection with the employee stock ownership trust, conditional on a decline in the Bank's share price and borrowings remaining outstanding when the trust terminates. The carrying amount of borrowings was ¥816 million at the end of September 2020.