Risk of Fixed-Asset Impairment Due to Lower Profitability
First written in FY2020. 3 of 5 entries say "Materialised", first in FY2020. Latest entry: FY2025-H1.
Daiwa Motor Transportation moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 43 of 77 companies on the "Worse" side.
60 other companies' latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「Because a decision was made to change the use of the above asset group, its carrying amount was reduced to its recoverable amount, and the reduction of ¥34 million was recognized as an impairment loss under extraordinary losses.」
The company decided to change the use of a gas station in Setagaya-ku, Tokyo, and recognized an impairment loss of ¥34 million. The risk of impairment of fixed assets materialized as a new actual loss. - FY2024-Q3MaterialisedAnnual report
「Because a decision was made to rebuild the above asset group, its carrying amount was reduced to its recoverable amount, and the reduction of ¥58 million was recorded as an impairment loss under extraordinary losses.」
In connection with the decision to rebuild, the company recognized an impairment loss of ¥58 million on investment property in Koto-ku, Tokyo, and the risk of impairment of fixed assets materialized as an actual loss. - FY2022-Q1RestatedAnnual report
「In making accounting estimates, including determining whether impairment losses on the group’s fixed assets are required and assessing the recoverability of deferred tax assets, the company has made its determinations based on information available when the quarterly consolidated financial statements were prepared, assuming a gradual recovery from 2022 onward.」
Regarding the risk of impairment premised on lower profitability caused by the pandemic, the company assumes a gradual recovery from 2022 onward and states that there have been no significant changes from the end of the previous consolidated fiscal year. - FY2021WorsenedAnnual report
「At the end of the current consolidated fiscal year, the company determined that fixed assets belonging to the asset group attributable to the passenger transportation business segment owned by the group showed indications of impairment because profitability had declined due to changes in the business environment resulting from the spread of COVID-19. However, in determining whether to recognize an impairment loss, the total undiscounted future cash flows expected to be generated by the asset group exceeded its carrying amount, and therefore no impairment loss was recognized.」
The company determined that the ¥2,960 million of fixed assets related to the taxi business within the passenger transportation business showed indications of impairment due to lower profitability caused by the pandemic. Although no impairment loss was recognized this time, the company states that an impairment loss could arise if assumptions such as future demand recovery change. - FY2020MaterialisedAnnual report
「If business plans and other assumptions underlying the determination of impairment indicators and recognition are revised due to a future deterioration in market conditions or other factors, the company may recognize an impairment loss. In addition, as described in “Section 5 Accounting Information, 1. Consolidated Financial Statements, (1) Consolidated Financial Statements, Notes to the Consolidated Income Statement, *4 Impairment Loss,” the group recognized an impairment loss of ¥72 million in the current consolidated fiscal year.」
The company identified the possibility of impairment due to a future deterioration in market conditions as a risk and recognized an impairment loss of ¥72 million in the current fiscal year at a taxi office in Nishi-Tokyo, Tokyo.