Recognition of goodwill in connection with the acquisition of Kapronasia and review of its amortization period
First written in FY2023-Q3. 2 of 5 entries say "Advanced", first in FY2024-Q1. Latest entry: FY2024.
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- FY2024Goodwill fully impairedAnnual report
「During the consolidated fiscal year, because the excess earning power initially expected in the business area of consolidated subsidiary Kapronasia Singapore Pte. Ltd. could no longer be expected, the full carrying amount was recorded as an impairment loss.」
The company recorded an impairment loss of ¥483.631 million, equal to the full carrying amount of goodwill that had been recognized at ¥542.416 million and scheduled for 8-year amortization. Goodwill on the consolidated balance sheet therefore fell to zero. - FY2024-H1AdvancedAnnual report
「Cash provided by operating activities during the interim consolidated accounting period was ¥21.295 million. This primarily reflected cash inflows from a ¥75.155 million decrease in trade receivables, ¥34.156 million of goodwill amortization, a ¥14.629 million increase in accounts payable and a ¥26.605 million increase in accrued consumption taxes, together with a ¥50.909 million income tax refund, offset by cash outflows including the recognition of an interim net loss before income taxes and other adjustments of ¥162.169 million.」
The group recorded ¥34.156 million of goodwill amortization during the interim consolidated accounting period. The goodwill balance declined from ¥542.416 million at 31 December 2023 to ¥520.870 million at 30 June 2024. - FY2024-Q1AdvancedAnnual report
「Depreciation and amortization expense and goodwill amortization for the cumulative first quarter were as follows. Goodwill amortization ¥16.902 million」
The company amortized ¥16.902 million of goodwill in the first quarter following the Kapronasia acquisition. The goodwill balance declined from ¥542.416 million at December 2023-end to ¥515.914 million at March 2024-end. - FY2023AchievedAnnual report
「(1) Amount of goodwill recognized ¥542.416 million (2) Reason for recognition Primarily the excess earning power expected from future business development. (3) Amortization method and period Straight-line amortization over 8 years」
The goodwill amount and amortization period previously under review were finalized at ¥542.416 million, to be amortized straight-line over 8 years. - FY2023-Q3First statedAnnual report
「(1) Amount of goodwill recognized ¥542.314 million The amount of goodwill is provisional because the allocation of the acquisition cost had not been completed as of the end of the third quarter of the current consolidated accounting period. (3) Amortization method and period The goodwill is scheduled to be amortized on a straight-line basis over the period estimated for the benefits to emerge. The period over which the investment benefits will emerge is currently under review.」
The company recognized provisional goodwill of ¥542.314 million on acquiring Kapronasia Singapore. It planned straight-line amortization but was still reviewing the period over which the investment benefits would emerge.