Contingent Liabilities and Impairment Risk Following Acquisitions
First written in FY2016. 4 of 5 entries say "Materialised", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「The Group recognized impairment losses on the following asset groups.」
Regarding post-acquisition business profitability risk, the company recognized impairment losses totaling ¥31 million, comprising ¥26 million in operating assets and ¥5 million in assets scheduled for disposal at BEL International Logistics. - FY2020MaterialisedAnnual report
「Because earnings initially expected from the goodwill and other intangible fixed assets of BEL INTERNATIONAL LOGISTICS LTD. have been delayed and it was determined that achieving the planned figures would take time, their carrying amounts were reduced to recoverable value. Goodwill of ¥367 million and other intangible fixed assets of ¥207 million were recognized as impairment losses and recorded as extraordinary losses.」
For BEL, goodwill of ¥367 million and intangible fixed assets of ¥207 million, totaling ¥574 million, became impairment losses because achievement of the earnings plan was delayed. - FY2019MaterialisedAnnual report
「Because earnings initially expected from the goodwill and other intangible fixed assets of KONOIKE J.TRANSPORT (THAILAND) CO.,LTD. have been delayed and it was determined that achieving the planned figures would take time, their carrying amounts were reduced to recoverable value. Goodwill of ¥242 million and other intangible fixed assets of ¥64 million were recognized as impairment losses and recorded as extraordinary losses.」
For the Thai subsidiary, goodwill of ¥242 million and intangible fixed assets of ¥64 million, totaling ¥306 million, became impairment losses because achievement of the earnings plan was delayed. - FY2018MaterialisedAnnual report
「Because earnings initially expected from the goodwill have been delayed and it was determined that achieving the planned figures would take time, goodwill of ¥225 million was recognized as an impairment loss and recorded as an extraordinary loss.」
For ANPHA-AG JOINT STOCK COMPANY, a ¥225 million goodwill impairment loss actually arose because achievement of the earnings plan was delayed following the acquisition. - FY2016First statedAnnual report
「The possibility that previously unrecognized liabilities, including contingent liabilities, may come to light after an acquisition cannot be ruled out.」
While citing risk mitigation through due diligence, the company explains the possibility of failing to achieve its business plan and goodwill impairment.