Goodwill Impairment Risk Associated with an EC Business Acquisition
First written in FY2024. 2 of 4 entries say "Worsened", first in 2026-05-30. Latest entry: FY2026.
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「During the consolidated fiscal year, operating income after goodwill amortisation remained negative, giving rise to an indication of impairment. The company therefore assessed whether recognition of an impairment loss was necessary. After comparing the undiscounted future cash flows generated by the business to which the goodwill is attributable with the carrying amount of the asset group, including the goodwill, the company determined that recognition of an impairment loss was not necessary.」
The company stated that, unlike the previous fiscal year's conclusion that there was no indication of impairment, the e-commerce business generated recurring operating losses during the current fiscal year, giving rise to an indication of impairment. However, no impairment loss was recognised. - 2026-05-30WorsenedGeneral Meetings of Shareholders
「During the consolidated fiscal year under review, operating income after including amortization of goodwill remained negative, giving rise to indications of impairment.」
Although the company determined that recognition of an impairment loss was unnecessary, it stated that indications of impairment had arisen in goodwill related to the EC business. - FY2025No indication of goodwill impairmentAnnual report
「For the consolidated fiscal year, the company determined that there was no indication of impairment of the goodwill described above and did not recognise an impairment loss.」
The balance of goodwill related to the e-commerce business was ¥1,566,574 thousand. However, the company determined that there was no indication of impairment during the fiscal year and did not recognise an impairment loss. - FY2024First statedAnnual report
「The company has determined that the goodwill appropriately reflects the business's future earnings capacity. However, if the expected results are not achieved due to changes in the business environment or other factors, an impairment loss on the goodwill may be recognised, which could have a material impact on the group's financial position and operating results.」
The acquisition of the Usual Group resulted in recognition of ¥1,762 million in goodwill, and the company disclosed for the first time the risk of impairment if the expected earnings capacity is not realised.