Impairment Risk Related to Fixed Assets
First written in FY2020. 2 of 4 entries say "Materialised", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2020: 61 of 113 companies on the "Worse" side.
- FY2026RestatedAnnual report
「If the investment costs for fixed assets held by the group are no longer expected to be recovered due to declining profitability caused by deterioration in the business environment or other factors, the carrying amount of the fixed assets will be reduced to their recoverable amount, with the reduction recorded as an impairment loss. This may affect the group's operating results and financial position.」
The company continues to disclose the risk of impairment arising from declining profitability of fixed assets, together with capital investment economic feasibility analyses and monthly budget-versus-actual management as countermeasures. - FY2023MaterialisedAnnual report
「As the excess earning power anticipated in the business plan at the time of acquiring the shares of the consolidated subsidiary ㈱太陽プロパン is no longer expected to materialise, the company recorded the entire unamortised balance of the related goodwill as an impairment loss.」
The risk concerning the recoverability of fixed and intangible assets materialised as a ¥107.850 million impairment loss on goodwill related to 太陽プロパン. - FY2022MaterialisedAnnual report
「The consolidated subsidiary ㈱キンキ酸器 leased the land for its Minami-Osaka Branch and owned the buildings and other assets on it. Following the branch's departure in March 2022, the company planned to fulfil its obligation under the lease agreement to restore the premises to their original condition, including demolishing the buildings. Accordingly, it reduced the carrying amount of the branch's buildings and other assets to their recoverable amount, a memorandum value of ¥1, and recorded the ¥47.852 million reduction as an impairment loss under extraordinary losses.」
The risk concerning the profitability and recoverability of fixed assets materialised as a ¥47.852 million impairment loss related to the departure of the Minami-Osaka Branch of キンキ酸器. - FY2020First statedAnnual report
「If investment costs are no longer expected to be recovered due to declining profitability caused by deterioration in the business environment or other factors, the carrying amount of fixed assets will be reduced to their recoverable amount, with the reduction recorded as an impairment loss. This may affect the group's operating results and financial position.」
The company identifies impairment arising from declining profitability of fixed assets as a separate major risk, with economic feasibility analyses of capital investments and monthly budget-versus-actual management as countermeasures.