Risk of recovering investments in new businesses
First written in FY2016. 2 of 6 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2021.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「As of the present time, there are no plans for new investments or other additional contributions, and there are no signs of risk.」
The entire amount invested in the Philippine joint venture has been impaired, and it is stated that there are no plans for new investments or additional contributions. - FY2020MitigatedAnnual report
「The Group has invested in ROCES MUSASHINO HOLDINGS,INC., a joint venture with a local partner in the Philippines. The company’s business plan has diverged from its initial plan in terms of progress, and accordingly, the shares were impaired in the fiscal year ended March 2017 and the current consolidated fiscal year. As of the date of submission of the annual securities report, the entire amount invested in the company had been impaired.」
The investment in the Philippine joint venture was impaired again in the current fiscal year following the divergence from its business plan, and the entire investment amount is stated to have been impaired. Although the possibility of an additional impact remains, the accounting response to the risk of recovering the investment is progressing. - FY2018RestatedAnnual report
「The company’s business plan has diverged from its initial plan in terms of progress. Accordingly, an impairment loss on shares of an affiliate was recorded as an extraordinary loss in the previous consolidated fiscal year.」
The disclosure continues to note the possibility of an additional impact from the divergence from the Philippine joint venture’s business plan and changes in its future policy or financial position, based on the impairment loss recorded in the previous fiscal year. - FY2017MaterialisedAnnual report
「The company’s business plan has diverged from its initial plan in terms of progress. Accordingly, we recorded an impairment loss on shares of an affiliate as an extraordinary loss in the current consolidated fiscal year. As of the date of submission of the annual securities report, we are coordinating and negotiating with the local partner regarding the company’s future policy. Changes in the company’s future policy, financial position or other matters may have a further impact on the Group’s operating results and financial position.」
The divergence from the business plan of the Philippine joint venture actually materialised, and an impairment loss on shares of an affiliate of ¥70 million was recorded. The disclosure also notes the possibility of an additional impact depending on the company’s future policy and financial position. - FY2017-Q3MaterialisedAnnual report
「During the cumulative third quarter, following an assessment of the progress of the business plan of the joint venture involved in the resort-related development business in the Philippines, the company recognized a corresponding impairment loss on its investment.」
Following an assessment of the progress of the business plan, the company recognized a ¥70 million impairment loss on shares of an affiliated company in connection with its investment in the Philippine resort-related joint venture. - FY2016First statedAnnual report
「The Group currently invests in a joint venture in the Philippines through a consolidated subsidiary. In connection with this investment and any future investment or capital contribution by the Group in new businesses, the performance of the business and the status of fund management could raise concerns about recovering the invested or contributed amounts and could affect the Group's results and financial condition.」
The company identifies recovery concerns relating to its existing investment in a Philippine joint venture and future investments in new businesses as risks.