Impairment Risk for Goodwill and Trademark Rights
First written in FY2021. 1 of 5 entries say "Worsened", first in FY2022. Latest entry: FY2025.
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
18 other companies' latest entry also says "Other".
- FY2025Goodwill growth alongside impairment headroomAnnual report
「As of the end of the eighth consolidated fiscal year, goodwill of ¥9,713 million and trademarks, classified as intangible assets, of ¥4,261 million were recognized in non-current assets, representing 51.6% of total assets. …Impairment losses could arise if the pre-tax discount rate increased by 4.1% or estimated future cash flows decreased by 24.0%.」
Goodwill increased to ¥9,713 million through the acquisition of 3 companies, while the ratio to total assets and impairment sensitivity declined from the previous fiscal year. No relevant cash-generating unit groups were identified in the impairment test. - FY2023MitigatedAnnual report
「As of the end of the sixth consolidated fiscal year, goodwill of ¥8,488 million and trademarks, classified as intangible assets, of ¥4,263 million were recognized in non-current assets, representing 52.4% of total assets. Impairment losses could arise if the pre-tax discount rate increased by 5.5% or estimated future cash flows decreased by 37.5%.」
The goodwill balance and its ratio to total assets declined from the previous fiscal year, while impairment sensitivity changed from a 7.5% increase in the discount rate and a 42.5% decrease in cash flows to 5.5% and 37.5%, respectively. No relevant cash-generating units were identified in the impairment test for the current fiscal year. - FY2023-Q2Finalization of Purchase Price AllocationAnnual report
「Upon finalizing the provisional accounting treatment, trademarks increased by ¥21 million, goodwill decreased by ¥13 million and deferred tax liabilities increased by ¥7 million.」
For BELLTREE and KESHIKI, acquired on 31 August 2022, the provisional purchase price allocation for the business combination was finalized. Goodwill decreased by ¥13 million, but no indication was given that the impairment risk had disappeared or that an impairment loss had been recognized. - FY2022WorsenedAnnual report
「As of the end of the fifth consolidated fiscal year, goodwill of ¥8,502 million and trademarks, classified as intangible assets, of ¥4,260 million were recognized in non-current assets, representing 55.4% of total assets. Impairment losses could arise if the pre-tax discount rate increased by 7.5% or estimated future cash flows decreased by 42.5%.」
Goodwill increased from ¥7,468 million to ¥8,502 million, and goodwill associated with the acquisitions of BELLTREE, KESHIKI and J ISLAND was also recognized. The basis for impairment sensitivity was updated with greater specificity, but no relevant cash-generating units were identified in the impairment test for the current fiscal year. - FY2021First statedAnnual report
「As of the end of the fourth consolidated fiscal year, goodwill of ¥7,468 million and trademarks, classified as intangible assets, of ¥4,258 million were recognized in non-current assets, representing 60.6% of total assets.」
The company stated that impairment losses could arise if the pre-tax discount rate increased by 11.0% or future cash flows decreased by 45.0%.