Estimated Net Realizable Value of Inventory and Risk of Inventory Write-Downs
First written in FY2023. 1 of 4 entries say "Materialised", first in FY2024. Latest entry: FY2026.
Land moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
36 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Inventory valuation loss (cost of sales) ¥121.099 million —」
The inventory valuation loss fell from ¥121.099 million in the previous fiscal year to zero in the current fiscal year. The Group holds real estate held for sale of ¥277.436 million, real estate under development for sale of ¥171.672 million and investments in joint ventures of ¥6.123781 billion. Although the risk inherent in estimating net realizable value remains, no inventory valuation loss was recognized in the current fiscal year. - FY2025WorsenedAnnual report
「Inventory valuation loss (cost of sales) ¥7.942 million ¥121.099 million」
The inventory valuation loss increased from ¥7.942 million in the previous fiscal year to ¥121.099 million. The risk associated with estimating net realizable value has materialized as a larger actual loss. - FY2024MaterialisedAnnual report
「If the net realizable value falls below the carrying amount due to changes in market conditions, policies or other assumed circumstances, an impairment loss or loss on sale will be recognized, which may affect the future performance of the Group.」
The risks associated with estimating the net realizable value of inventories have been reconfirmed. During the fiscal year, real estate held for sale of ¥256.589 million, real estate under development for sale of ¥488.090 million and investments in joint ventures of ¥6.068935 billion were recorded, together with an inventory valuation loss of ¥7.942 million, indicating that estimation risk continues to materialize as an actual loss. - FY2023First statedAnnual report
「If the net realizable value falls below the carrying amount due to changes in market conditions, policies or other assumed circumstances, an impairment loss or loss on sale will be recognized, which may affect the future performance of the Group.」
Real estate held for sale of ¥294.628 million, real estate under development for sale of ¥838.541 million and investments in joint ventures of ¥3.527 billion are measured at net realizable value. The main assumptions are selling prices, construction costs, supply-demand balance, material and labor costs, and expected power generation from renewable energy projects. An inventory valuation loss of ¥338.237 million was recognized during the fiscal year, indicating that estimation risk has materialized as an actual loss.