Impairment risk relating to goodwill associated with ドリームホップ
First written in FY2021. 3 of 5 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2025MaterialisedAnnual report
「During the current business year, because the performance of 株式会社ドリームホップ (hereinafter "DH") fell below the initial plan and its substantial value was determined to have declined significantly, we recorded an ¥80,000 thousand loss on valuation of shares in an affiliate.」
ドリームホップ's performance remained below plan and its substantial value continued to decline, resulting in an ¥80 million loss on valuation of shares in an affiliate. The separate financial statements also disclosed a ¥70 million loss on valuation of shares in an affiliate and a ¥37 million allowance for doubtful accounts on loans. - FY2024MaterialisedAnnual report
「During the current business year, because the performance of 株式会社ドリームホップ (hereinafter "DH") fell below the initial plan and its substantial value was determined to have declined significantly, we recorded an ¥80,000 thousand loss on valuation of shares in an affiliate. The loans to affiliates and allowance for doubtful accounts relate to loans to DH and the allowance for those loans.」
The uncertainty regarding ドリームホップ's business plan and recoverability disclosed through the previous fiscal year appeared in actual financial figures as performance below plan, an ¥80,000 thousand loss on valuation of shares in an affiliate, and a ¥37,349 thousand allowance for doubtful accounts on loans. - FY2023RestatedAnnual report
「The company's medium-term business plan incorporates as its main assumptions an increase in net sales from higher orders for existing businesses and an increase in sales from the rollout of new services. These assumptions involve significant uncertainty because they are affected by customer demand trends and the status of the group's response, and may have a material effect on the valuation of the subsidiary's shares in the financial statements for the next business year.」
For ドリームホップ, the company continues to disclose uncertainty regarding demand and the status of its response while assuming recoverability based on higher orders for existing businesses and the rollout of new services. - FY2022-Q2MaterialisedAnnual report
「During the second quarter of the fiscal year, we revised the company’s business plan following delays in launching new services and changes in its internal structure. As a result, we determined that excess earning power had been impaired and that there were indications of impairment. We measured the recoverable amount based on value in use and recognized the entire goodwill balance as an impairment loss under extraordinary losses. As a result of this change, profit before income taxes for the first six months of the fiscal year decreased by ¥174.750 million.」
Regarding the impairment risk of ドリームホップ's goodwill disclosed in the previous fiscal year, indications of impairment arose due to delays in the rollout of new services and other factors, and the full goodwill balance was actually recorded as an impairment loss. - FY2021First statedAnnual report
「At the end of the current consolidated fiscal year, goodwill related to 株式会社ドリームホップ amounted to ¥189,113 thousand and was recorded under other intangible assets on the consolidated balance sheet.」
Regarding the ¥189,113 thousand of goodwill arising from the acquisition of ドリームホップ, the company disclosed for the first time in specific terms that future cash flows and assumptions underlying the medium-term business plan could have a material effect on the recognition of an impairment loss. The company currently determines that there are no indications of impairment.