Uncertainty in the valuation of substantial goodwill arising from the acquisition of WeCapital
First written in FY2024. 1 of 3 entries say "Materialised", first in FY2025-H1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 1 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「II. Current interim consolidated accounting period (from 1 November 2025 to 30 April 2026) ... 2. Information on impairment losses on fixed assets, goodwill and other items by reportable segment None.」
While impairment losses including ¥15,073 million of goodwill related to WeCapital were recognized in the previous interim consolidated accounting period, the segment information states that there were no material impairment losses or similar items in the current interim consolidated accounting period. - FY2025-H1MaterialisedAnnual report
「In the crowdfunding business segment, regarding WeCapital株式会社, a consolidated subsidiary, the company determined that the excess earning power initially expected could no longer be anticipated after considering progress against the original business plan and the outlook for future performance, and recognized an impairment loss on goodwill. The impairment loss recognized during the current interim consolidated accounting period was ¥15,073 million.」
The company determined that the excess earning power underlying the goodwill recognized in connection with the acquisition of WeCapital could no longer be anticipated, and an impairment loss of ¥15,073 million was recognized. - FY2024First statedAnnual report
「This goodwill arose from a business combination during the current consolidated fiscal year and was recognized as the difference between the acquisition cost and the fair value, as of the business combination date, of the acquiree's identifiable assets and liabilities, representing the future excess earning power expected from the acquiree's future business development. ... The amount of goodwill was ¥16,141.705 million.」
Goodwill of ¥16,141.705 million was recognized from business combinations including WeCapital. The purchase price allocation was incomplete, and the amount could change if the feasibility of the business plan changes, through the recognition of an impairment loss, according to the company.