Write-down of Deferred Tax Assets Due to Reduced Recoverability
First written in FY2020-Q3. 4 of 12 entries say "Mitigated", first in FY2022. Latest entry: FY2026-H1.
Brass moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 3 of 13 companies on the "Worse" side.
22 other companies' latest entry also says "Other".
- FY2026-H1Lower deferred tax asset balanceAnnual report
「Deferred tax assets ¥1,094.635 million ¥1,072.159 million」
The balance of deferred tax assets decreased from ¥1,094.635 million to ¥1,072.159 million. No new write-down or material change in accounting estimates is disclosed. - FY2025MitigatedAnnual report
「Net deferred tax assets ¥936.101 million ¥1,094.635 million」
Net deferred tax assets increased from ¥936.101 million to ¥1,094.635 million, with no new write-down recognized during the year. - FY2025-H1RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
The Company states that there were no material changes in the accounting estimates and assumptions, including those relating to impairment of fixed assets and the recoverability of deferred tax assets. - FY2024-Q3MitigatedAnnual report
「Deferred tax assets ¥950.213 million ¥960.619 million」
Deferred tax assets increased from ¥950.213 million at the end of the previous consolidated fiscal year to ¥960.619 million. The quarterly report states that there were no material changes in the accounting estimates or assumptions. - FY2023MitigatedAnnual report
「Net deferred tax assets: ¥950.213 million」
Net deferred tax assets increased from ¥600.566 million in the previous fiscal year to ¥950.213 million, with no new write-down recognized during the fiscal year. This indicates an improvement from the prior state of reduced recoverability. - FY2023-Q3RestatedAnnual report
「There have been no material changes to the accounting estimates and the assumptions used in those estimates described under “Management's Analysis of Financial Position, Operating Results and Cash Flows” in the securities report for the previous fiscal year.」
The Company states that there were no material changes in the accounting estimates relating to impairment of fixed assets and the recoverability of deferred tax assets in light of the impact of the infection and other factors. - FY2022MitigatedAnnual report
「Net deferred tax assets ¥441.905 million ¥600.566 million」
Net deferred tax assets increased from ¥441.905 million to ¥600.566 million, with no new write-down recognized during the fiscal year. The valuation allowance also declined, indicating an improvement from the prior state of reduced recoverability. - FY2021WorsenedAnnual report
「The estimates of future undiscounted cash flows are based on assumptions including future wedding ceremony volumes formulated using historical ceremony volumes and current bookings, and an approximately constant average unit price throughout the estimation period for future undiscounted cash flows after COVID-19 subsides. The assumptions also provide for the impact of declining average unit prices associated with the spread of COVID-19 to remain through 2022, while customer demand is expected to recover to pre-pandemic levels from 2023 onward.」
The impairment estimates include the specific assumptions that the impact of lower average unit prices will remain through 2022 and that demand will recover to pre-pandemic levels from 2023 onward. If actual conditions differ from these assumptions, performance from the following fiscal year onward may fluctuate. - FY2021-Q3WorsenedAnnual report
「The impact of COVID-19 has lasted longer than initially expected in the areas where the Company operates, due to the third and fourth waves of infections and the repeated issuance of declarations of a state of emergency and other measures. The Company has continued its business activities while implementing stringent measures, but its performance in the current and following fiscal years is expected to be affected, including by lower revenue resulting from lower utilization rates. It is difficult to accurately predict when the infection will subside and the extent of its impact, and the Company considers this a highly uncertain event. The impact of the infection is expected to continue during the fourth quarter, but the Company assumes that performance will gradually recover from the following fiscal year onward as vaccinations progress in various regions.」
The impact of the infection has lasted longer than initially expected due to the third and fourth waves and declarations of a state of emergency and other measures, with an impact on performance expected in the current and following fiscal years. While the impact is expected to continue in the fourth quarter, the Company has assumed that performance will gradually recover from the following fiscal year onward as vaccinations progress. - FY2021-Q1WorsenedAnnual report
「During the cumulative first quarter, the Company made accounting estimates relating to impairment of fixed assets and the recoverability of deferred tax assets based on the assumptions described above. As it is difficult to accurately predict when the infection will subside and the extent of its impact, this is a highly uncertain event. If the assumptions described above change, they may have a material impact on the accounting estimates.」
As the impact of the infection has continued for longer, the assumptions underlying accounting estimates, including the recoverability of deferred tax assets, were changed, and high uncertainty continues. - FY2020MaterialisedAnnual report
「Following a careful review of the recoverability of deferred tax assets, the Company wrote down ¥219.245 million in deferred tax assets and recognized the amount as adjustments to corporate income taxes.」
In light of the decline in the recoverability of deferred tax assets, a write-down of ¥219.245 million was recognized for the year. - FY2020-Q3First statedAnnual report
「Following a careful review of the recoverability of deferred tax assets, the Company wrote down ¥178.946 million in deferred tax assets and recognized the amount as adjustments to corporate income taxes.」
A review of recoverability in light of the impact of COVID-19 and other factors resulted in the actual write-down of ¥178.946 million in deferred tax assets.