Declining Asset Values and Impairment Risk for Real Estate Holdings
First written in FY2016. 3 of 3 entries say "Materialised", first in FY2016. Latest entry: FY2018.
The whole theme swung hardest in 2020: 50 of 96 companies on the "Worse" side.
- FY2018MaterialisedAnnual report
「During the fiscal year, the Company decided to relocate its head office and reduced the carrying amount of fixed assets among its business facilities that are not expected to be used in the future to their recoverable amount. The resulting decrease of ¥47 million was recognized as an impairment loss.」
Regarding the risk of declining asset values and impairment, an impairment loss of ¥47 million was incurred on fixed assets not expected to be used in the future due to the head-office relocation. - FY2017MaterialisedAnnual report
「During the fiscal year, the recoverable amount of the above asset group declined significantly due to lower profitability. Accordingly, its carrying amount was reduced to the recoverable amount, and the resulting decrease of ¥150 million was recognized as an impairment loss.」
The Company recognized impairment losses totaling ¥150 million, comprising ¥38 million on equipment for the restaurant business in Setagaya-ku, Tokyo, and ¥111 million on equipment for the lodging business in Otsu, Shiga Prefecture. - FY2016MaterialisedAnnual report
「If the value of inventories and fixed assets held by the Company declines due to future economic trends, deterioration in real estate market conditions or other factors, inventory write-downs and impairment losses may be recognized, potentially affecting the operating results and financial condition of the Group.」
Regarding the decline in asset values and impairment identified as risks, the Company recognized impairment losses of ¥1,042 million on rental properties and other assets during the fiscal year.