teno.Holdings Company Limited [7037.T]
TOKYO, May 28 (Pulse News Wire) – Teno.holdings Company Limited (7037.T) announced today that its subsidiary, Teno Corporation, will recognize special income and losses related to subsidies received for operating a newly established childcare facility. In April 2026, Teno Corporation opened a recognized childcare center named "Land Ooi Machi" in Shinagawa Ward, Tokyo.
As a result, the company expects to record a special income of ¥292 million due to subsidy payments. However, this will also lead to a special loss of ¥292 million due to accounting adjustments for asset impairment.
The company follows the direct reduction method for accounting treatment of such subsidies, which involves reducing the book value of fixed assets directly and adjusting depreciation expenses accordingly. Under this approach, compared to the residual distribution method, subsidies are recorded as temporary revenue while depreciation costs are higher in the initial operational year.
Regarding the impact on performance, Teno Holdings stated that these factors have already been incorporated into their earnings forecast released on February 13, 2026.
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