Failure to Realize Expected Investment Benefits and Impairment Risk Following an Acquisition
First written in FY2016. 9 of 15 entries say "Materialised", first in FY2018-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「In addition, during the fiscal year, the Company recorded a ¥125,463 thousand impairment loss on shares of affiliated companies and a ¥19,681 thousand reversal of allowance for doubtful accounts.」
The Company recorded an impairment loss of ¥125,463 thousand on shares of affiliated companies, indicating that risks related to investment returns and the earning power of affiliated companies continued to emerge as losses in the parent company's financial statements. - FY2025MaterialisedAnnual report
「For the fiscal year, the company recorded an impairment loss on shares in affiliated companies of ¥275.536 million and a reversal of the allowance for doubtful accounts of ¥218.097 million.」
The company recorded an impairment loss of ¥275.536 million on shares in an affiliated company, with the risks related to investment benefits and the affiliated company's earnings power materializing as a loss in the parent company's financial statements. - FY2024-Q1MaterialisedAnnual report
「The company is working to secure working capital by recovering security deposits and reducing inventories following the withdrawal from unprofitable mobile stores, transferring shares in affiliated companies with limited synergy benefits for our group, and selling assets unrelated to the core business.」
The transfer of shares in an affiliated company judged to have limited synergy benefits has entered the execution phase as a measure to secure working capital. The risk of failure to achieve investment benefits from acquisitions and capital relationships has materialized as the reorganization of an affiliated company. - FY2022RestatedAnnual report
「During the consolidated fiscal year, the company recorded the entire unamortized balance of ¥352.378 million for goodwill, software and other assets recognized as excess earning power when it acquired shares in consolidated subsidiary Tri-Ace as an impairment loss, primarily because new orders from customers had been delayed and the earnings initially anticipated could no longer be expected.」
The company confirmed in its full-year report the impairment of the ¥352.378 million unamortized balance of goodwill, software and other assets due to delays in Tri-Ace's new orders and lower expected earnings. - FY2022-Q3RestatedAnnual report
「In the game business, after considering the progress of consolidated subsidiary Tri-Ace's original business plan and its future earnings outlook, the company concluded that the excess earning power initially anticipated could no longer be expected and recorded an impairment loss on goodwill. The goodwill impairment loss recorded for this matter was ¥220.524 million for the six months ended in the second quarter of the current consolidated fiscal year.」
The third-quarter report continues to disclose the ¥220.524 million goodwill impairment loss for Tri-Ace arising because the excess earning power initially anticipated could no longer be expected. - FY2022-Q2MaterialisedAnnual report
「In the game business, after considering the progress of consolidated subsidiary Tri-Ace's original business plan and its future earnings outlook, the company concluded that the excess earning power initially anticipated could no longer be expected and recorded an impairment loss on goodwill. The goodwill impairment loss recorded for this matter was ¥220.524 million for the six months ended in the second quarter of the current consolidated fiscal year.」
As the excess earning power initially anticipated for Tri-Ace could no longer be expected, the company recorded an impairment loss of ¥220.524 million on goodwill. The failure to achieve the expected investment benefits following the acquisition resulted in an actual loss. - FY2021RestatedAnnual report
「If we are unable to identify effective investment opportunities or achieve the strategic investment benefits initially expected, this could affect our group's performance and other aspects of its business.」
The company continues to disclose failure to achieve investment benefits and the potential impairment of goodwill and other assets as risks related to M&A and capital and business alliances. - FY2020RestatedAnnual report
「However, if we are unable to identify effective investment opportunities or achieve the strategic investment benefits initially expected, this could affect our group's performance and other aspects of its business.」
The company continues to disclose failure to achieve investment benefits and the potential impairment of goodwill and other assets as risks related to M&A and capital and business alliances. - FY2019-Q1MaterialisedAnnual report
「For goodwill and other assets recorded at consolidated subsidiary Boom, the company reduced their carrying amount to recoverable amount because the expected earnings could no longer be anticipated, among other reasons, and recorded the reduction as an impairment loss under extraordinary losses. The recoverable amount was assessed at zero.」
As the expected earnings from Boom could no longer be anticipated, the carrying amount of goodwill and other assets was reduced to a recoverable amount of zero. The failure to achieve the expected investment benefits following the acquisition resulted in an impairment loss of ¥39.471 million. - FY2018RestatedAnnual report
「We had explored ways to strengthen cooperation among the group's development companies to achieve the objectives described above. However, we concluded that group synergies had not been realized as expected and that sufficient benefits could not be expected going forward, and decided to transfer the shares.」
Regarding Shade, the company again explained in the business separation notes the circumstances leading to the sale after concluding that the group synergies expected at the time of the acquisition had not been fully realized. - FY2018-Q2MaterialisedAnnual report
「The gain on the reorganization of affiliated companies comprises the series of gains and losses arising from the transfer of all shares in Shade Co., Ltd., formerly a consolidated subsidiary, as detailed below.」
In connection with the transfer of all shares in Shade, the company recorded a gain on the reorganization of affiliated companies of ¥53.973 million, including a gain on the sale of shares in an affiliated company of ¥193.973 million and a provision for doubtful accounts of ¥140.000 million. - FY2018-Q1MaterialisedAnnual report
「We had explored ways to strengthen cooperation among the group's development companies to achieve the objectives described above. However, we concluded that group synergies had not been realized as expected and that sufficient benefits could not be expected going forward, and decided to transfer the shares.」
Regarding Shade, the company concluded that the group synergies expected at the time of the acquisition were not being fully realized and transferred all shares. The risk of failing to achieve the expected investment benefits has materialized as an actual sale. - FY2016First statedAnnual report
「If the strategic investment benefits initially expected are not realized, this could affect our group's performance and other aspects of its business.」
The company identifies a lack of effective investment opportunities, failure to achieve investment benefits, and the potential impairment of goodwill and other assets due to failure to meet future plans.