Valuation Losses on Land Held for Sale and Impairment Losses on Fixed Assets Due to Declining Land Prices
First written in FY2017. 4 of 7 entries say "Materialised", first in FY2019. Latest entry: FY2026.
Kobe Electric Railway moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2026: 12 of 22 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For fixed assets for which recovery of the investment was expected to be difficult due to declining profitability and other factors, and fixed assets expected to be dismantled or removed due to the termination of businesses and other activities, the carrying amounts were reduced to their recoverable amounts. The resulting reduction of ¥133 million was recorded as an impairment loss under extraordinary losses.」
Impairment losses on fixed assets continued to arise in practice, with ¥133 million recorded for childcare and healthcare business assets and other assets. - FY2023MaterialisedAnnual report
「Extraordinary losses were ¥967 million, an increase of ¥493 million, or 104.0%, from the previous consolidated fiscal year, mainly because we recorded reductions in other construction cost contributions, including subsidies for the “Railway Track Safety and Safe Transport Facilities Development Project,” and impairment losses on rental buildings.」
Regarding the risk of declines in the value and profitability of held assets, an impairment loss of ¥59 million on rental buildings was actually recorded in the fiscal year. - FY2022ReframedAnnual report
「Business-use fixed assets held by our Group, including land and buildings for lease, may incur impairment losses if profitability declines due to deteriorating economic conditions or intensifying competition, or if land prices fall substantially. Securities held by our Group may incur valuation losses and other losses if their market prices fall substantially in the future. These factors may affect the financial position and operating results of our Group.」
The scope was expanded from the previous focus on valuation losses on land for sale and impairment losses on fixed assets to the broader risk of declines in the fair value of all held assets, including lower profitability of business-use fixed assets and falling market prices of securities. - FY2020MaterialisedAnnual report
「Impairment losses of ¥5 million were recorded for stores and other assets, and ¥5 million for rental land.」
Impairment losses on fixed assets actually arose in FY2020, with a total of ¥11 million recorded. This was down from ¥675 million in the previous fiscal year. - FY2019MaterialisedAnnual report
「Because losses from the July 2018 heavy rains in western Japan and impairment losses on rental buildings, among other items, were recorded as extraordinary losses」
Impairment losses on fixed assets actually arose rather than remaining a possibility, and an impairment loss of ¥675 million was recorded for rental buildings. - FY2018RestatedAnnual report
「If land prices decline in the future, valuation losses on land for sale and impairment losses on fixed assets held by our Group may arise, potentially affecting the operating results and financial position of our Group.」
We continue to disclose the possibility of valuation losses on land for sale and impairment losses on fixed assets due to falling land prices. - FY2017First statedAnnual report
「If land prices decline in the future, valuation losses on land for sale and impairment losses on fixed assets may arise, potentially affecting the operating results and financial position of our Group.」
The risk of valuation losses on land for sale and impairment losses on fixed assets due to falling land prices.