Risk of declining sales prospects for inventories held for policy purposes
First written in FY2023. 2 of 4 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2018: 3 of 9 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Merchandise and finished goods 1,378,576 1,150,154」
Strategically held inventories decreased from ¥1,378.576 million in the previous fiscal year to ¥1,150.154 million. The risk of inventory write-downs if saleability declines remains, but the balance subject to this risk is decreasing. - FY2025MitigatedAnnual report
「Merchandise and finished goods: ¥1,820,664 thousand, ¥1,378,576 thousand」
Merchandise and finished goods held for policy purposes decreased from ¥1,820,664 thousand in the previous fiscal year to ¥1,378,576 thousand. The risk of reducing the carrying amount when sales prospects decline continues to be described, but the balance has decreased. - FY2024WorsenedAnnual report
「(Inventory held for policy purposes) Amount recorded in the consolidated financial statements for the consolidated fiscal year: Merchandise and finished goods, ¥1,820,664 thousand」
Inventory held for policy purposes increased from ¥1,458,718 thousand in the previous fiscal year to ¥1,820,664 thousand. It continues to be indicated that a decline in the ability to sell the inventory due to changes in customer needs and other factors could have a material effect on the financial statements for the following fiscal year. - FY2023First statedAnnual report
「Among merchandise and finished goods, items held for policy purposes are measured at cost. However, items whose profitability has declined based on past sales performance and other factors, and items that have fallen outside the normal operating cycle, are identified and their future sales prospects are assessed based on certain assumptions, taking into account past sales performance, order status and replacement with new products, among other factors. They are measured by reducing their carrying amount accordingly.」
For ¥1,458,718 thousand of merchandise and finished goods held for policy purposes, an accounting estimate risk was independently identified for the first time: if future sales prospects disappear, the items could have a material effect on the consolidated financial statements for the following fiscal year.