Unrecognized deferred tax assets related to LAA Co.'s tax loss carryforwards
First written in FY2019-Q3. 3 of 7 entries say "Mitigated", first in FY2020. Latest entry: FY2026.
Linical moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 10 of 13 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The valuation allowance increased by ¥773,795 thousand. The main components of the increase were a ¥497,471 thousand valuation allowance related to tax loss carryforwards and a ¥173,249 thousand valuation allowance related to liabilities for retirement benefits.」
The valuation allowance for tax loss carryforwards and other items increased significantly, and net deferred tax assets decreased from ¥811,516 thousand to ¥573,289 thousand. - FY2026-H1Reversal of Deferred Tax AssetsAnnual report
「After carefully reviewing the recoverability of deferred tax assets in light of the current business environment and future earnings trends, ¥408 million in deferred tax assets was reversed during the current interim consolidated accounting period and recognized under income taxes—deferred.」
Following a review of recoverability based on the business environment and earnings trends, ¥408 million in deferred tax assets was reversed. The balance of deferred tax assets decreased from ¥829,225 thousand to ¥447,478 thousand. - FY2024MitigatedAnnual report
「Net deferred tax assets increased from ¥549,885 thousand to ¥927,572 thousand. Deferred tax assets related to tax loss carryforwards amounted to ¥94,183 thousand.」
For tax loss carryforwards related to LAA and other entities, recognized deferred tax assets increased, and deferred tax assets after deducting the valuation allowance related to tax loss carryforwards amounted to ¥94,183 thousand. - FY2021MitigatedAnnual report
「Tax loss carryforwards ¥244,953 thousand Valuation allowance related to tax loss carryforwards △¥216,939 thousand Deferred tax assets ¥28,013 thousand」
Tax loss carryforwards decreased from ¥409,590 thousand in the previous fiscal year to ¥244,953 thousand, and the valuation allowance also decreased. Deferred tax assets of ¥28,013 thousand were recognized for part of the tax loss carryforwards. - FY2020MitigatedAnnual report
「The valuation allowance decreased by ¥242,816 thousand from the previous consolidated fiscal year. The main reason for the decrease was the reduction in the balance of tax loss carryforwards at the end of the period as a result of utilizing tax loss carryforwards in calculating taxable income for the current consolidated fiscal year.」
As tax loss carryforwards were utilized, the valuation allowance decreased by ¥242,816 thousand year on year, and tax loss carryforwards decreased from ¥652,366 thousand to ¥409,590 thousand. - FY2019Recognized a valuation allowance for tax loss carryforwardsAnnual report
「The valuation allowance increased by ¥541,290 thousand from the end of the previous fiscal year. This was mainly because a valuation allowance was recognized for tax loss carryforwards and other items incurred by Accelovance, Inc. (now Linical Accelovance America, Inc.), which was acquired as a wholly owned subsidiary through LINICAL USA, INC. (headquartered in New York) on 16 April 2018 (U.S. Eastern Standard Time), because their future tax benefits could not be recognized as deferred tax assets at this time.」
A valuation allowance was recognized for the full amount of ¥652,366 thousand in tax loss carryforwards related to LAA, and the amount was not recognized as a deferred tax asset. This was specified in the full-year income tax accounting note. - FY2019-Q3First statedAnnual report
「Profit attributable to owners of the parent was ¥458 million, down 49.1% year on year, due mainly to the recognition of one-time business restructuring costs related to the consolidation of LAA's U.S. locations and surplus personnel, as well as the inability at this time to recognize as deferred tax assets the future tax benefits of tax loss carryforwards incurred by LAA.」
The inability at this time to recognize the future tax benefits of LAA's tax loss carryforwards as deferred tax assets was cited for the first time as one of the factors contributing to the decrease in profit attributable to owners of the parent.