Risk of impairment of fixed assets and right-of-use assets due to declining store profitability
First written in FY2022. 1 of 3 entries say "Materialised", first in FY2022. Latest entry: FY2025.
AB&Company moved to the "Worse" side of this theme in 2023, 6 years after the typical company in this theme (2017).
The whole theme swung hardest in 2025: 32 of 75 companies on the "Worse" side.
11 other companies' latest entry also says "Other".
- FY2025Recurring impairment lossesAnnual report
「Impairment losses are recorded under “Other expenses” in the consolidated statement of income. These primarily represent reductions in the carrying amounts of assets at stores whose profitability has declined substantially, including buildings and structures, tools, furniture and fixtures, vehicles, and right-of-use assets, to their recoverable amounts.」
The Company also recognised impairment losses of ¥31 million on store assets and other assets in the fiscal year ended October 2025, meaning that the impairment risk from declining store profitability continues to materialise. - FY2023WorsenedAnnual report
「For the current consolidated fiscal year (from 1 November 2022 to 31 October 2023) … amount of impairment losses … Total 32」
Impairment losses on store assets and other assets increased from ¥10 million in the previous fiscal year to ¥32 million in the current fiscal year, indicating a broader incidence of impairment at stores whose profitability had declined substantially. - FY2022MaterialisedAnnual report
「Impairment losses are recorded under “Other expenses” in the consolidated statement of income. These primarily represent reductions in the carrying amounts of assets at stores whose profitability has declined substantially, including buildings and structures, tools, furniture and fixtures, vehicles, and right-of-use assets, to their recoverable amounts. / Total 10」
The Company recognised an impairment loss of ¥10 million on store assets and other assets in the fiscal year ended October 2022. It continues to identify the possibility of impairment resulting from declining store profitability as a risk.