Recoverability of deferred tax assets related to tax loss carryforwards
First written in FY2019. 4 of 5 entries say "Worsened", first in FY2021. Latest entry: FY2025.
Demae-Can moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 4 of 11 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「The Company recognized deferred tax assets of ¥4 million in respect of tax loss carryforwards of ¥25,692 million, calculated by applying the statutory effective tax rate.」
Tax loss carryforwards increased from ¥23,112 million in the previous fiscal year to ¥25,692 million. Deferred tax assets of ¥4 million were recognized for a portion of the amount. - FY2024WorsenedAnnual report
「For the consolidated fiscal year, after estimating future taxable income, the Company determined that it could not reasonably expect to recover the full amount of deferred tax assets related to deductible temporary differences and tax loss carryforwards within a reasonable period, and therefore did not recognize deferred tax assets.」
Tax loss carryforwards totaled ¥23,112 million based on the statutory effective tax rate, while deferred tax assets fell from ¥7 million in the previous fiscal year to zero. - FY2022WorsenedAnnual report
「The Company had tax loss carryforwards because it recorded a net loss for the fourth consecutive fiscal year in the fiscal year ended August 2022, and was not subject to corporate tax, inhabitants' tax or enterprise tax based on the normal tax rates. As the Company planned to continue actively expanding its business in the fiscal year ending August 2023, it expected this situation to continue.」
Net losses were recorded for 4 consecutive fiscal years, and tax loss carryforwards totaled ¥19,495,446 thousand based on the statutory effective tax rate. - FY2021WorsenedAnnual report
「The Company had tax loss carryforwards because it recorded a net loss for the third consecutive fiscal year in the fiscal year ended August 2021, and was not subject to corporate tax, inhabitants' tax or enterprise tax based on the normal tax rates.」
The Company had tax loss carryforwards due to net losses for 3 consecutive fiscal years, totaling ¥6,943,312 thousand based on the statutory effective tax rate. - FY2019First statedAnnual report
「The Company recognized deferred tax assets of ¥11,695 thousand in respect of tax loss carryforwards of ¥98,757 thousand, calculated by applying the statutory effective tax rate.」
The Company has for the first time separately described the risk of a write-down if tax loss carryforwards and deferred tax assets associated with the net loss are judged unrecoverable following a change in forecasts of future taxable income.