Rakuten Group, Inc. reported consolidated impairment loss on fixed assets for the second quarter ended June 30, 2026. For the period, the company recorded an impairment loss, etc., on fixed assets of JPY 17 billion in its Consolidated financial results (IFRS) for the second quarter of the fiscal year ending December 31, 2026. As part of its logistics business, the Company provides a service that leases a portion of its warehouse space.
For the three months ended June 30, 2026, amid uncertainty over future parcel volume growth, the Company has been working to optimize warehouse investment and the utilization of warehouse space. Under these circumstances, the Company held extensive discussions with the lessees regarding future operations. Based on the results of these discussions, the Company decided to use the warehouse space internally rather than continue leasing it to third parties.
This loss was recognized as an impairment loss and related expenses arising from the above event. Due to the event, it became highly probable that the future cash flows expected from these assets would fall significantly below their carrying amount, and therefore an impairment indicator was identified. As a result of the impairment test conducted in response to such indicator, it was determined that the recoverable amount is expected to fall below the carrying amount.
The recoverable amount for these assets is measured based on their value in use; however, as no future cash flows are expected, the recoverable amount has been valued at zero.
Leave a comment