Accounting Estimates in Light of COVID-19
First written in FY2021-Q2. 1 of 10 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 5 of 22 companies on the "Worse" side.
- FY2025ReframedAnnual report
「For the undiscounted future cash flows of stores where indications of impairment had been identified, we estimated the cash flows using assumptions that took into account the characteristics of each business and region, including the country and store location, in an environment where raw material prices and utility costs remained elevated.」
The assumptions were refined from the previous accounting estimates, which focused mainly on the timing of the end of the infectious disease, to impairment estimates incorporating persistently high raw material and utility costs and business- and region-specific characteristics. - FY2023Details of impairment assumptions and full-year lossesAnnual report
「For the undiscounted future cash flows of stores where indications of impairment had been identified, we estimated the cash flows using assumptions that took into account the characteristics of each business and region, including the country and store location, in an environment where the impact of COVID-19 was easing and further increases in foot traffic were expected, while raw material prices and utility costs remained elevated.」
We explicitly stated the assumptions for impairment estimates by business and region, incorporating the expected easing of the infectious disease and increase in foot traffic, while factoring in persistently high raw material and utility costs. - FY2023-Q2RestatedAnnual report
「There were no material changes to the assumptions, including the expected timing of the end of the COVID-19 pandemic, stated under “Significant Accounting Estimates” in the securities report for the previous consolidated fiscal year.」
We stated that there had been no significant changes from the previous fiscal year in the assumptions used for accounting estimates, including the timing of the end of the infectious disease. - FY2022Explicitly stated the assumption that recovery would take several yearsAnnual report
「For the undiscounted future cash flows of stores where indications of impairment had been identified, we estimated the cash flows using assumptions that recovery from the current environment, in which the impact of COVID-19 continues, would take several years, while also taking into account the characteristics of each business and region, including the country and store location.」
We explicitly stated that the assumption that recovery from the impact of the infectious disease would take several years was used in estimating impairment of property, plant and equipment. - FY2022-Q3Updated the like-for-like comparison with the fiscal year before last and returned to operating profitabilityAnnual report
「Revenue for the cumulative third-quarter consolidated period from March to November 2021 was ¥113,475 million, or 91.5% of the fiscal year-before-last level on a like-for-like basis. Operating profit was ¥1,395 million, and returned to profitability as a result of various cost-reduction measures. However, it remained ¥1,724 million below the fiscal year-before-last level on a like-for-like basis, and had still not recovered to the level before the impact of COVID-19.」
Compared with fiscal 2019, before the infectious disease, revenue was 91.5% and operating profit was ¥1,395 million, returning to profitability. However, operating profit remained ¥1,724 million below the pre-pandemic level. - FY2022-Q2Lowered the full-year revenue outlook while maintaining the operating profit targetAnnual report
「The full-year consolidated earnings outlook for the fiscal year has been affected by lower revenue resulting from the results for the cumulative second-quarter consolidated period and external conditions, including the extension of the state of emergency in September. At the same time, we have assumed that restrictions on activity will be eased progressively from October, following the lifting of the state of emergency, and that revenue will steadily recover in line with the initial plan. As a result, consolidated revenue is expected to be ¥152,700 million, ¥2,400 million below the initial plan, representing 91.0% on a like-for-like basis. Based on this assumption, operating profit is expected to reach the initial target of ¥2,700 million despite a certain impact from lower revenue, owing to improved profitability from the cost efficiencies described above and the market recovery.」
In response to the extension of the state of emergency, we lowered our assumption for the recovery of full-year revenue, while expecting to maintain operating profit of ¥2,700 million based on cost efficiencies and market recovery. - FY2022-Q1Details of recovery assumptions and impairment lossesAnnual report
「Revenue for the cumulative first-quarter consolidated period of the fiscal year ending February 2022 was 90.8% on a like-for-like basis. Although it remained below the assumed level, this was due to the decline in revenue at domestic operating companies resulting from the impact of the third declaration of a state of emergency in March 2021, which had not been assumed initially, and the extension of the declaration period.」
Like-for-like revenue for the first quarter was 90.8%, and the downside resulting from the third declaration of a state of emergency and its extension was reflected in the accounting estimates. Impairment losses were ¥58 million, down from ¥445 million in the same period of the previous year. - FY2021Details of recovery assumptions and impairment lossesAnnual report
「Impairment losses for the fiscal year amounted to ¥4,528 million, compared with ¥2,479 million in the previous fiscal year, due to store closures and the results of measurements by business as described above. We assessed the recoverability of deferred tax assets based on future earnings forecasts and future earning capacity, taking into account the impact of the infectious disease, but recorded an additional amount because of the effect of tax loss carryforwards generated during the fiscal year.」
We continued to assess the recoverability of deferred tax assets based on earnings forecasts and future earning capacity reflecting the impact of the infectious disease, while impairment losses increased from ¥2,479 million in the previous fiscal year to ¥4,528 million. - FY2021-Q3Details of recovery assumptions and impairment lossesAnnual report
「Impairment losses for the cumulative third-quarter consolidated period amounted to ¥1,898 million, compared with ¥443 million in the same period of the previous year, due to store closures and the results of measurements by business as described above. We assessed the recoverability of deferred tax assets based on future earnings forecasts and future earning capacity, taking into account the impact of COVID-19, but recorded an additional amount because of the effect of tax loss carryforwards generated during the cumulative second-quarter consolidated period.」
We continued to assess the recoverability of deferred tax assets based on earnings forecasts and future earning capacity reflecting the impact of the infectious disease, while impairment losses increased to ¥1,898 million. - FY2021-Q2First statedAnnual report
「We assess recoverability based on future earnings forecasts and future earning capacity, taking into account the impact of COVID-19, but recorded an additional amount because of the effect of tax loss carryforwards generated during the cumulative second-quarter consolidated period.」
We assessed the recoverability of deferred tax assets using earnings forecasts and future earning capacity that reflected the impact of the infectious disease, and recorded an additional amount because of tax loss carryforwards. We also conducted impairment testing based on the impact of the infectious disease.