Risk of failure to achieve M&A and business alliance objectives and impairment risk
First written in FY2022. 2 of 3 entries say "Materialised", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
- FY2025MaterialisedAnnual report
「As a result of impairment testing of goodwill at the transition date, the recoverable amount of the cash-generating unit or group of cash-generating units fell below its carrying amount, and the Group recognized an impairment loss of ¥19,619 million on goodwill arising from the acquisition of the Shimachu business.」
The M&A and impairment risk relating to the Shimachu business materialized as a ¥19,119 million impairment of goodwill upon first-time adoption of IFRS. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, the Group recognized an impairment loss of ¥9,419 million on land and buildings at stores and other assets related to the Shimachu business.」
For the Shimachu business following the M&A, an impairment loss of ¥9,419 million on store land, buildings and other assets was actually recognized against a backdrop including discrepancies between the business plan and actual results. - FY2022First statedAnnual report
「However, the Group's business, operating results and financial condition could be adversely affected by impairment of goodwill or the acquisition cost of shares resulting from failure to achieve the results anticipated when conducting such M&A, capital alliances or other transactions, unforeseen business problems, or the burden of transaction-related expenses.」
While considering M&A and capital alliances as means of growth, the Group has identified failure to achieve results, impairment of goodwill and acquisition costs, unforeseen business problems and related expenses as new major risks.