Impairment Losses from Declines in the Net Asset Value of Investments in Subsidiaries
First written in FY2024-Q2. 1 of 3 entries say "Reframed", first in FY2025. Latest entry: FY2026.
Asnova moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2022: 11 of 19 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「ASNOVA VIETNAM CO., LTD is a company with negative net assets, and the amount of negative net assets was ¥394 million as of 31 March 2026.」
The deteriorating financial condition of the overseas subsidiary was quantified as negative net assets of ¥394 million, making the potential decline in the net asset value of its shares and related impairment risk more specific. No impairment loss was reported. - FY2025ReframedAnnual report
「We value shares in subsidiaries using the cost method. Because these are shares without market prices, if their net asset value declines materially due to deterioration in financial condition or other factors, we may recognize an impairment loss on shares in subsidiaries, which could affect results and financial position in the non-consolidated financial statements.」
In FY2025, the impairment risk for investments in subsidiaries was incorporated into the general overseas-business risk disclosure and described as the risk of impairment losses on shares in subsidiaries. - FY2024-Q2First statedAnnual report
「We value investments in subsidiaries using the cost method. Because these are investments without market prices, if their net asset value declines materially due to deterioration in financial condition or other factors, we may recognize an impairment loss on investments in subsidiaries, which could affect results and financial position in the non-consolidated financial statements.」
The company first explicitly disclosed the risk of recognizing impairment losses in the non-consolidated financial statements if the financial condition of subsidiaries such as the Vietnam subsidiary deteriorates materially and the net asset value of the investments declines significantly.