Recoverability risk for deferred tax assets
First written in FY2017. 2 of 4 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Denka moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 8 of 34 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The valuation allowance increased by ¥4.557 billion. This increase was mainly due to the recognition by Denka Performance Elastomer LLC of a valuation allowance related to net operating loss carryforwards.」
The valuation allowance related to DPE's net operating loss carryforwards increased by ¥4.557 billion, increasing exposure related to the recoverability of deferred tax assets. - FY2025WorsenedAnnual report
「The valuation allowance increased by ¥3.845 billion. This increase was mainly due to the recognition by Denka Performance Elastomer LLC of a valuation allowance related to impairment losses.」
The valuation allowance related to DPE's impairment losses increased by ¥3.845 billion, increasing exposure related to the recoverability of deferred tax assets. - FY2021RestatedAnnual report
「The recoverability of deferred tax assets is assessed based on profitability or the sufficiency of future taxable income under tax planning,」
The risk to the recoverability of deferred tax assets arising from estimates of future taxable income and deterioration in the business environment continues to be described. - FY2017First statedAnnual report
「If actual taxable income differs from the estimate and a reassessment of recoverability becomes necessary, or if tax laws are amended, including changes in tax rates, deferred tax assets may need to be written down, which could adversely affect our group's operating performance and financial position.」
The possibility that deferred tax assets may need to be written down due to estimates of future taxable income or tax law amendments is described.