Poor Performance, Closure and Impairment of Equipment Centers
First written in FY2022. 2 of 5 entries say "Restated". Latest entry: FY2026.
Asnova moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 43 of 77 companies on the "Worse" side.
23 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「However, if an equipment center we open fails to generate earnings as initially planned and its performance cannot be restored, we may be required to recognize an impairment loss under impairment accounting, which could affect the Group’s results and financial position.」
The Group continues to identify poor performance, closure and impairment at equipment centers as risks. No impairment loss was recognized in the current consolidated fiscal year. - FY2025MaterialisedAnnual report
「In January 2025, we transferred the business of the Tsuruga Construction Center, the scaffolding erection and dismantling service division, and recognized a gain on transfer of business of ¥42 million as extraordinary income. Because we decided to lease the land used by that business, we calculated net realizable value based on a real-estate appraisal and recognized an impairment loss of ¥16 million as an extraordinary loss.」
The transfer of the Tsuruga Construction Center business and change in land use resulted in an actual impairment loss of ¥16 million in FY2025, providing a concrete example of equipment-center-related impairment risk. - FY2024WorsenedAnnual report
「In addition, when acquiring land for an equipment center, we often pay a premium based on the assumption that a certain level of earnings will be generated. If profitability declines, it may become impossible to recover the investment through value in use, requiring the recoverable amount to be measured using net realizable value and potentially resulting in an impairment loss that could affect our results and financial position.」
The company added a specific impairment risk arising from premiums paid when acquiring land and subsequent declines in profitability. - FY2023RestatedAnnual report
「However, if an equipment center we open fails to generate earnings as initially planned and its performance cannot be restored, we may be required to recognize an impairment loss under impairment accounting, which could affect the Group’s results and financial position.」
The Group continues to identify poor performance, closure and impairment at equipment centers as risks. No impairment loss was recognized in the current consolidated fiscal year. - FY2022First statedAnnual report
「However, if an equipment center we open fails to generate earnings as initially planned and its performance cannot be restored, we may be required to recognize an impairment loss under impairment accounting, which could affect our results and financial position.」
Location decisions consider the market area, competitors, economic conditions, earnings forecasts and investment payback period. The company recognized an impairment loss of ¥43,258 thousand in Kurashiki, Okayama Prefecture, in the previous fiscal year, but none in the current fiscal year.