Goodwill impairment risk associated with the Blue Flag acquisition
First written in FY2023. 3 of 6 entries say "Worsened", first in FY2024-Q3. Latest entry: 2026-06-01.
The whole theme swung hardest in 2023: 35 of 98 companies on the "Worse" side.
29 other companies' latest entry also says "Restated".
- 2026-06-01RestatedGeneral Meetings of Shareholders
「If changes arise in key assumptions due to future business plans or changes in the business environment, they could have a material effect on the valuation of investments in affiliates in the consolidated financial statements for the following consolidated fiscal year.」
For the goodwill of Blue Flag Pty Ltd and Autopact Pty Ltd, the company disclosed impairment testing and the possibility that changes in future business plans or economic conditions could affect valuation. - FY2025-H1Goodwill impairment exposure expanded following the acquisition of AutocareAnnual report
「Amount of goodwill recognized ¥6,123 million The amount of goodwill was provisionally calculated because the allocation of the acquisition cost had not been completed as of the end of the current interim consolidated accounting period.」
The acquisition of Autocare added provisional goodwill of ¥6,123 million, further expanding exposure to impairment risk arising from the acquired business falling short of plan or changes in the business environment. - FY2024Expanded the scope of goodwill subject to valuation as acquisitions expandedAnnual report
「In the consolidated financial statements for the current consolidated fiscal year, amounts recognized for item 1 (Unit: ¥ million) Current consolidated fiscal year Blue Flag Pty Ltd. 1,191 Auto Trader Media Group Ltd. 379 Autopact Pty Ltd 20,830」
Goodwill was recognized for Blue Flag, as well as Auto Trader and Autopact, expanding the scope of exposure to goodwill impairment risk. As of the fiscal year-end, none of these businesses was considered to show any indication of impairment. - FY2024-Q3Increased goodwill impairment exposure due to expansion of acquisitionsAnnual report
「Amount of goodwill arising ¥20,632.277 million The goodwill amount was provisionally calculated because the allocation of the acquisition cost had not been completed as of the end of the current third quarter consolidated accounting period.」
The Company provisionally recognised goodwill of ¥20,632.277 million in connection with the acquisition of Autopact. It also provisionally recognised goodwill of ¥540.271 million for Auto Trader, increasing exposure to impairment due to future business plans and changes in the business environment as acquisitions expanded. - FY2024-Q1Finalisation and reduction of the provisional goodwill amountAnnual report
「As a result, the provisionally calculated goodwill of ¥2,030.614 million decreased by ¥646.929 million upon finalisation of the accounting treatment, resulting in ¥1,383.685 million.」
The provisional accounting treatment for the business combination involving Blue Flag was finalised, reducing the recognised goodwill from ¥2,030.614 million by ¥646.929 million to ¥1,383.685 million. - FY2023First statedAnnual report
「Goodwill arising from the acquisition of Blue Flag Pty Ltd. Amount recognised in the consolidated financial statements for the current consolidated fiscal year in relation to item 1 ¥1,834.974 million Although there were no indications of impairment during the current consolidated fiscal year, if changes in the conditions or assumptions underlying the estimates arise due to changes in future business plans or the business environment, it may be necessary to recognise an impairment loss and conduct impairment accounting.」
In connection with Blue Flag becoming a consolidated subsidiary, the Company recognised goodwill of ¥1,834.974 million and disclosed for the first time the potential for impairment due to future business plans and changes in the business environment as a significant accounting estimate.