Fixed-asset impairment risk in insurance services due to COVID-19
First written in FY2021-Q2. 2 of 3 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2022-Q2.
Sunnexta Group moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 4 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2022-Q2MaterialisedAnnual report
「Cumulative second quarter of the current consolidated fiscal year (1 July 2021 to 31 December 2021) Shinjuku-ku, Tokyo Insurance agency business Customer-related intangible assets 7,758」
For the insurance agency business, the company recorded an additional impairment loss of ¥7,758 thousand on customer-related intangible assets, as the recoverable amount fell below the carrying amount. - FY2021-Q3RestatedAnnual report
「The company recorded an impairment loss on intangible assets in the Incubation Business segment. The impairment loss recorded during the cumulative third quarter of the current consolidated fiscal year was ¥25,163 thousand.」
The company continued to record an impairment loss of ¥25,163 thousand on intangible assets and goodwill related to insurance services in the cumulative third quarter, reflecting the impact of COVID-19 and other factors. - FY2021-Q2MaterialisedAnnual report
「After reassessing the business in light of the impact of the COVID-19 pandemic, including voluntary suspension of operations, on insurance services in the incubation business, the company determined that the recoverable amount had fallen below the carrying amount because of the uncertain outlook, and recorded an extraordinary loss of ¥25 million as an impairment loss on intangible assets, including goodwill.」
For the insurance agency business, the company reassessed business value in light of the impact of COVID-19 and the uncertain outlook, and recorded an impairment loss of ¥22,802 thousand on intangible assets and ¥2,361 thousand on goodwill, for a total of ¥25,163 thousand. In its accounting estimates, the company assumed that the pandemic would subside and recovery would begin in or after the fiscal year ending June 2022.