Risk of impairment of investments in and loans to affiliates due to infectious diseases
First written in FY2021. 1 of 3 entries say "Materialised", first in FY2022. Latest entry: FY2026.
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- FY2026MitigatedAnnual report
「Reversal of allowance for doubtful accounts ¥663,984 thousand」
The company recorded a ¥663,984 thousand reversal of the allowance for doubtful accounts previously recognized for loans to affiliates and other items. It continues to disclose the possibility of additional provisions or reversals depending on the financial condition of affiliates. - FY2022MaterialisedAnnual report
「Depending on the financial condition of the subsidiaries in the next fiscal year, additional impairment of investments in affiliates and additional provisions or reversals of the allowance for doubtful accounts may be required.」
In connection with deterioration in the financial condition of subsidiaries due to the pandemic and other factors, the company recorded an impairment loss on investments in affiliates of ¥1,628,745 thousand and a provision for doubtful accounts of ¥1,199,022 thousand in the current fiscal year, with valuation and collection risks continuing to materialize. - FY2021First statedAnnual report
「Investments in affiliates are written down substantially when the financial condition of the issuing company has deteriorated significantly, unless the likelihood of recovery is supported by sufficient evidence. Investments in affiliates of ¥3,541,701 thousand, loans of ¥1,567,721 thousand, and an allowance for doubtful accounts of ¥727,128 thousand have been recorded. The outlook for economic conditions remains uncertain due to the impact of the spread of COVID-19 on the operating conditions of business partners and the overall economic environment. Depending on the financial condition of the subsidiaries in the next fiscal year, additional impairment of investments in affiliates and additional provisions or reversals of the allowance for doubtful accounts may be required.」
Assuming deterioration in the financial condition of subsidiaries due to the pandemic, the company disclosed the possibility of additional impairment of investments in affiliates and additional provisions for loans as new risks. An impairment loss on investments in affiliates of ¥3,290 million has been recorded, and part of the risk has materialized.