Risk of impairment of fixed assets
First written in FY2021. 3 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 5 of 15 companies on the "Worse" side.
25 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Our Group holds a significant amount of property, plant and equipment for the operation of its businesses. If the fair value of property, plant and equipment currently in use declines significantly or future cash flows cannot be expected, impairment charges may be recognized.」
The risk that a decline in fair value or insufficient future cash flows could lead to impairment has been reconfirmed for property, plant and equipment generally. - FY2025ReframedAnnual report
「Our Group holds a significant amount of property, plant and equipment for the operation of its businesses. If the fair value of property, plant and equipment currently in use declines significantly or future cash flows cannot be expected, impairment charges may be recognized. Such charges could affect our Group's financial position and operating results.」
The disclosure has been reorganized from an explanation of impairment indicators relating to a specific textile products manufacturing business into a risk applicable to property, plant and equipment generally. - FY2024RestatedAnnual report
「In this business, orders for the principal automotive products are recovering as the semiconductor supply shortage and other issues ease. However, losses from operating activities have continued due to the impact of higher costs resulting from persistently high raw material prices, energy prices and logistics costs, among other factors, indicating impairment of the asset group associated with this business.」
For the property, plant and equipment of 山口ニット, it has been reconfirmed that losses have continued due to high costs despite the recovery in orders, indicating impairment indicators. No impairment loss was recognized in the current fiscal year. - FY2023RestatedAnnual report
「In this business, orders for the principal automotive products have declined substantially due to the semiconductor supply shortage and other factors. As a result, losses from operating activities have continued, indicating impairment of the asset group associated with this business.」
The disclosure continues to identify impairment indicators and uncertainty regarding future cash flows for the property, plant and equipment of 山口ニット, although no impairment loss was recognized in the current fiscal year. - FY2022MaterialisedAnnual report
「Impairment loss 10,322」
The consolidated statement of income includes an impairment loss of ¥10.322 million, indicating that the impairment risk relating to property, plant and equipment has emerged as an actual loss. The company also states that no impairment loss was recognized for the asset group of Yamaguchi Knit. - FY2021First statedAnnual report
「In this business, orders have declined substantially due to the impact of the novel coronavirus infection, losses arising from operating activities have continued, and there are indications of impairment relating to the asset group associated with the business. Accordingly, the company estimated total undiscounted future cash flows based on the business plan approved by the management of the subsidiary and conducted a test to determine whether an impairment loss should be recognized. As a result, because total undiscounted future cash flows expected from the asset group exceeded the carrying amount of the property, plant and equipment, no impairment loss was recognized.」
The company identified indications of impairment relating to ¥821.753 million in property, plant and equipment of Yamaguchi Knit and other assets, but did not recognize an impairment loss for the asset group during the year. It indicates that an impairment loss may be recorded if future results differ from the estimates.