Risk of Declining Fixed-Asset Profitability and Impairment Losses
First written in FY2017. 3 of 7 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2024.
Chuo Warehouse moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2024: 3 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The Group also conducts monthly analyses of operating results by business location and works to reduce risk by optimizing the composition of handled cargo, charges, staffing allocation, and other factors as appropriate each time.」
For the risk of impairment of property, plant and equipment, it specifies the verification of significant capital investments, monthly analysis by business location, and optimization of cargo composition, charges, and staffing allocation as response measures. No indications of impairment were identified during the current fiscal year. - FY2021MaterialisedAnnual report
「At the Fukui office of the Hokuriku Branch, the Group recognized an impairment loss of ¥24.010 million because it discontinued the use of some existing warehouse buildings and attached equipment as commercial warehouses due to their deterioration.」
The risk of lower profitability and loss of expected use of property, plant and equipment materialized, and the Group recognized an impairment loss of ¥24.010 million at the Fukui office. - FY2020RestatedAnnual report
「The Group owns tangible fixed assets used in its business, such as warehouses and land. If a decline in the market value of these assets or lower profitability makes it unlikely that the investment will be recovered, the Group will recognize an impairment loss, which may affect its operating results and other financial matters.」
It reiterates the risk of impairment losses resulting from declines in the market value or profitability of property, plant and equipment. It states that no impairment loss was applicable for the current consolidated fiscal year. - FY2019MaterialisedAnnual report
「During the current consolidated fiscal year, the Group decided to demolish some existing warehouse facilities in connection with its asset utilization plan for the Umekoji area. As no future use was expected, it reduced their carrying amount to the recoverable amount and recognized the reduction as an extraordinary loss. Because the assets were scheduled for disposal, their recoverable amount was determined to be zero.」
The risk of lower profitability and impairment of property, plant and equipment materialized, and the Group recognized an impairment loss of ¥147.774 million on existing warehouse facilities at the Umekoji office. - FY2019-Q2MaterialisedAnnual report
「As the Group decided to demolish some existing warehouse facilities in connection with the effective utilization of assets in the Umekoji area and no future use was expected, it reduced their carrying amount to the recoverable amount and recognized the reduction as an extraordinary loss. The impairment loss recognized for the six months ended the second quarter of the current consolidated fiscal year was ¥147.774 million.」
As no future use was expected for the existing warehouse facilities, the Group recognized an impairment loss of ¥147.774 million. The risk of lower profitability and impairment losses on property, plant and equipment has materialized as an actual loss. - FY2018RestatedAnnual report
「The Group owns tangible fixed assets used in its business, such as warehouses and land. If a decline in the market value of these assets or lower profitability makes it unlikely that the investment will be recovered, the Group will recognize an impairment loss, which may affect its operating results and financial condition.」
It reiterates the risk of impairment losses on warehouses, land, and other assets resulting from declines in market value or profitability. - FY2017First statedAnnual report
「The Group owns tangible fixed assets used in its business, such as warehouses and land. If a decline in the market value of these assets or lower profitability makes it unlikely that the investment will be recovered, the Group will recognize an impairment loss, which may affect its operating results and financial condition.」
It describes the possibility of recognizing impairment losses on tangible fixed assets used in the business, such as warehouses and land, due to declines in market value or profitability.