Recoverability of Deferred Tax Assets and Estimates of the Impact of COVID-19
First written in FY2022. 2 of 5 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Arbeit-Times moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 5 of 22 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The recoverability of deferred tax assets is assessed. The key assumptions in the future business plan involve management judgment and estimation uncertainty, and changes in the premises or assumptions underlying the estimates could have a material impact on the assessment of the recoverability of deferred tax assets.」
Deferred tax assets increased from ¥111.145 million to ¥190.986 million, while the subtotal of the valuation allowance decreased from ¥283.560 million to ¥189.262 million. At the same time, uncertainty regarding the future business plan continued to be disclosed. - FY2025WorsenedAnnual report
「The recoverability of deferred tax assets is assessed. The key assumptions in the future business plan involve management judgment and estimation uncertainty, and changes in the premises or assumptions underlying the estimates could have a material impact on the assessment of the recoverability of deferred tax assets.」
Deferred tax assets decreased from ¥125.212 million to ¥111.145 million, while the subtotal of the valuation allowance increased from ¥155.973 million to ¥283.560 million. Uncertainty regarding estimates of future earnings and taxable income increased. - FY2024WorsenedAnnual report
「Deferred tax assets ¥138.973 million ¥125.212 million Subtotal of valuation allowance △¥130.314 million △¥155.973 million」
Deferred tax assets decreased from ¥138.973 million to ¥125.212 million, while the subtotal of the valuation allowance increased from ¥130.314 million to ¥155.973 million. Uncertainty regarding estimates of future taxable income and other factors was reflected in the figures. - FY2023-Q3MaterialisedAnnual report
「The loss attributable to owners of the parent for the quarter was ¥6 million, due to the write-down of deferred tax assets, compared with a loss attributable to owners of the parent of ¥31 million in the same quarter of the previous year.」
The risk previously described, namely that deferred tax assets could be written down and tax expenses recognized because of differences in estimates of when the infectious disease would subside and of future profits, actually materialized as a write-down of deferred tax assets during the cumulative third quarter of the current fiscal year. - FY2022First statedAnnual report
「These estimates may be affected by the timing of the subsiding of COVID-19 and changes in uncertain future economic conditions. If the timing and amount of actual profits and taxable income differ from the estimates, deferred tax assets may be written down and tax expenses may be recognized in the next consolidated fiscal year.」
It was stated that the ¥120.421 million in deferred tax assets could be written down and tax expenses recognized if the timing of the subsiding of the infectious disease or future profits and taxable income differed from the estimates.