Failure of acquired businesses to meet earnings plans and goodwill impairment
First written in FY2016. 3 of 10 entries say "Materialised", first in FY2016. Latest entry: 2026-07-31.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- 2026-07-31MaterialisedOccurring Fact
「After examining the recoverability of the goodwill related to the hotel-related business operated by Kurashiki Royal Art Hotel Co., Ltd. in connection with the transfer of that business, we recorded the unamortized balance of the goodwill of ¥64,977 thousand as an impairment loss under extraordinary losses.」
For the goodwill related to Kurashiki Royal Art Hotel, which had previously been considered free of impairment indicators or expected to be recoverable, the company recorded an impairment loss of ¥64.977 million on the unamortized balance following the transfer of the business. - FY2026MitigatedAnnual report
「Interest-rate risk on borrowings and hedging」
To avoid interest-rate risk on some long-term borrowings, interest-rate swap transactions have been entered into to fix interest payments. - 2026-05-28MitigatedGeneral Meetings of Shareholders
「The relevant company’s performance improved as domestic tourism demand recovered following the reclassification of COVID-19 to Category 5, and we therefore determined that there were no indications of impairment of the relevant goodwill. In addition, as stated in “9. Notes on Significant Subsequent Events” below in this notice of convocation, we expect to recover the goodwill in the consolidated financial statements for the next fiscal year because the hotel real estate and business held by Kurashiki Royal Art Hotel were transferred on 1 May 2026.」
Regarding the goodwill of Kurashiki Royal Art Hotel, the company states that there were no indications of impairment and that recovery is expected in the following fiscal year following the transfer of the hotel real estate and business. - FY2025RestatedAnnual report
「As the real estate and business of 株式会社倉敷ロイヤルアートホテル were transferred on 1 May 2026, recovery of the goodwill is expected to be recognised in the consolidated financial statements for the following consolidated fiscal year.」
Following the transfer of Kurashiki Royal Art Hotel's real estate and business, recovery of ¥67.008 million of goodwill relating to the company is expected in the following fiscal year. - FY2024MitigatedAnnual report
「The company's performance during the current consolidated fiscal year improved as domestic tourism demand has recently recovered, and it was therefore determined that there was no indication of impairment for the goodwill.」
Improved performance at Kurashiki Royal Art Hotel led to the reaffirmation that there was no indication of impairment for the ¥75.130 million of goodwill. - FY2022WorsenedAnnual report
「The company's performance during the current consolidated fiscal year improved as domestic tourism demand recovered following the reclassification of COVID-19 as a Class 5 disease, and it was therefore determined that there was no indication of impairment for the goodwill.」
Improved performance at Kurashiki Royal Art Hotel led to the determination that the impairment indicator for goodwill considered in the prior fiscal year was no longer present in the current fiscal year, and no impairment loss was recorded. - FY2021MaterialisedAnnual report
「Although an indication of impairment was identified for the ¥99.496 million of goodwill relating to Kurashiki Royal Art Hotel, it was determined that future cash flows would exceed the carrying amount, and no impairment loss was recognised in the current fiscal year. The possibility of recognising an impairment loss in the following fiscal year if future performance differs from estimates is disclosed.」
An impairment indicator was identified for the goodwill relating to Kurashiki Royal Art Hotel, but no impairment loss was recognised in the current fiscal year because future cash flows were determined to exceed the carrying amount. The possibility of recognising an impairment loss in the following fiscal year if future performance differs from estimates is disclosed. - FY2019RestatedAnnual report
「An impairment loss was recognised on the goodwill relating to our consolidated subsidiary PT. CITRA SURYA KOMUNIKASI because the earnings assumed in the business plan considered at the time of acquisition were no longer expected to be achieved.」
The expected earnings in the acquisition-date business plan for the business associated with CSK were no longer expected to be achieved, resulting in an impairment loss of ¥38.959 million. The risk of failing to meet the earnings plan for the acquired business actually materialised. - FY2017RestatedAnnual report
「There were no applicable matters during the consolidated fiscal year from 1 April 2016 to 31 March 2017.」
The impairment risk relating to goodwill due to changes in business assumptions and declining profitability is reaffirmed as a significant accounting estimate. - FY2016MaterialisedAnnual report
「We recognized an impairment loss on goodwill related to our consolidated subsidiary 有限会社増田製麺 because the earnings anticipated in the business plan prepared at the time of acquisition could no longer be expected.」
An impairment loss of ¥99.486 million was recognized on goodwill related to 有限会社増田製麺, reflecting the acquired business's failure to meet its earnings plan.