Recoverability of Deferred Tax Assets and Tax-Reform Risk
First written in FY2019. 3 of 4 entries say "Worsened", first in FY2021. Latest entry: FY2024.
iRidge moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 7 of 28 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「The valuation allowance increased by ¥582.421 million. The main reason for this increase was a change in the company's classification when determining the recoverability of deferred tax assets.」
Uncertainty regarding the recoverability of deferred tax assets has increased, with the valuation allowance rising by ¥582.421 million and deferred tax assets declining from ¥390.540 million to ¥238.494 million. - FY2023WorsenedAnnual report
「The valuation allowance increased by ¥70.260 million. The main reason for this increase was a change in the company's classification when determining the recoverability of deferred tax assets.」
Deferred tax assets decreased from ¥484.580 million to ¥390.540 million, while the valuation allowance increased by ¥70.260 million. Dependence on future taxable income and uncertainty over recoverability have increased in numerical terms. - FY2021WorsenedAnnual report
「Qoil Co., Ltd. has prepared its accounting estimates based on the assumption that, supported by its stable relationships with client companies developed over time, it will generate profits as the real-promotion market recovers from the impact of COVID-19.」
Deferred tax assets of ¥348.457 million have been estimated based on Qoil's future profits and a recovery in the real-promotion market, making the risk of a recoverability review due to a prolonged pandemic more concrete. - FY2019First statedAnnual report
「However, if future taxable income differs from projections and a review of recoverability becomes necessary, or if tax laws are amended, including changes in tax rates, it may become necessary to write down deferred tax assets, which could affect the Group's business and performance.」
While recognizing deferred tax assets of ¥390.882 million, the company has disclosed the risk of write-downs resulting from differences between projected future taxable income and actual results and from tax law amendments.