Bad-debt risk arising from counterparty fraud or business deterioration
First written in FY2017. 1 of 3 entries say "Materialised", first in FY2019. Latest entry: FY2021.
The whole theme swung hardest in 2026: 18 of 64 companies on the "Worse" side.
- FY2021MitigatedAnnual report
「As a general rule, we conduct credit checks on new business partners and seek to collect information relevant to their creditworthiness, including requesting that they submit financial statements for prior fiscal years. For existing business partners, we have established a system for monitoring their credit status by checking the monthly collection of accounts receivable and sharing information on the counterparty through the responsible employee as needed.」
In light of the fact that bad-debt risk arising from business partner bankruptcies and other events has already materialized, the company has specified management measures including new-counterparty credit checks, financial statement reviews and monthly collection monitoring. - FY2019MaterialisedAnnual report
「Increase of ¥68 million in the provision for doubtful accounts due to the bankruptcy of a business partner」
The company recorded a ¥68 million increase in the provision for doubtful accounts due to the bankruptcy of a business partner, indicating that credit risk has materialized as a loss and provision. - FY2017First statedAnnual report
「Our group prepares for the credit risk of business partners and others. However, if an unexpected bad debt risk arising from misconduct by a business partner or deterioration in its financial condition materialises, resulting in additional losses or an allowance for doubtful accounts being recognised, this may affect our group's performance.」
While it manages the credit standing of business partners, it describes the possibility of bad debts and additional losses or allowance recognition due to misconduct or deterioration in financial condition.