IT services management company Shift (TYO:3697) expects to recognize a non-consolidated extraordinary loss from valuation declines in shares of equity-method affiliate Rise Consulting, based on quoted market prices.
In its consolidated financial statements, the company will assess recoverable amounts using the investee's business plan and other factors, with the equity-method loss still under review, according to a Tokyo bourse filing on Friday.
Separately, shares of Gurunavi, held as investment securities, have also seen significant fair value declines, leading to an expected extraordinary loss on both a non-consolidated and consolidated basis.
All figures are preliminary, based on recent market prices, and will be finalized in the third-quarter earnings release scheduled for July 15, with further updates if conditions change.