Obsolescence and Additional Investment Risks Related to System Development Investments
First written in FY2017. 2 of 5 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2020.
3 other companies' latest entry also says "Restated".
- FY2020RestatedAnnual report
「However, technological innovation and changes in consumer needs have accelerated considerably in recent years. If technologies and systems developed or invested in beyond initial expectations become obsolete and require reinvestment exceeding the amounts initially planned, or if increased revenue commensurate with the investment or operational efficiencies cannot be expected, the Group's operating results and financial position may be affected by impairment of fixed assets and increased depreciation and amortization expenses.」
The company has reaffirmed the risk of obsolescence and failure to recover investment in systems, including core broadcasting systems, video streaming and 4K/5G support. - FY2019-Q3MaterialisedAnnual report
「Because the expected useful life of part of this streaming platform had to be shortened, we reduced the carrying amount of this asset group to its recoverable amount and recognized the reduction of ¥2.065 billion as an impairment loss under extraordinary losses.」
The shortening of the expected useful life of the existing platform and recognition of a ¥2.065 billion impairment loss actually occurred in connection with the replacement of the video streaming platform. - FY2018-Q3RestatedAnnual report
「Our consolidated subsidiary 日テレITプロデュース is developing the Nippon Television Network-standardized commercial broadcasting system (the "System"). Although it negotiated system usage fees with users because development costs were expected to exceed initial estimates, it became clear that part of the costs could not be recovered. Accordingly, the unrecoverable amount was reasonably estimated and an impairment loss was recognized in the second quarter of the consolidated fiscal year.」
The company has restated the previously occurring event of development cost overruns, the inability to recover part of the costs and recognition of a ¥4.915 billion impairment loss, stating that there was no new risk or material change. - FY2018-Q2MaterialisedAnnual report
「Because development costs for this system were expected to exceed initial estimates, we negotiated system usage fees with users, but ultimately became unable to recover part of the development costs. Accordingly, we reduced the carrying amount of this asset group to its recoverable amount and recognized the reduction of ¥4.915 billion as an impairment loss under extraordinary losses.」
Development cost overruns and the inability to recover part of the costs actually occurred in the Nippon Television Network-standardized commercial broadcasting system, resulting in an impairment loss of ¥4.915 billion on software and other assets. - FY2017First statedAnnual report
「However, technological innovation and changes in consumer needs have accelerated considerably in recent years. If technologies and systems developed or invested in beyond initial expectations become obsolete and require reinvestment exceeding the amounts initially planned, the Group's operating results and financial position may be affected.」
The company identifies the risk that core broadcasting systems, video streaming systems and other systems may become obsolete as technology and needs change, requiring reinvestment.