Deferred Tax Asset Recoverability and Valuation Allowance Risk
First written in FY2020. 7 of 14 entries say "Restated". Latest entry: FY2026.
Tigers Polymer moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2022: 9 of 31 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The valuation allowance increased by ¥106.473 million. This increase was mainly due to an increase in the valuation allowance for tax loss carryforwards and other items at the consolidated subsidiary Tigers Polymer(Malaysia) Sdn. Bhd.」
The valuation allowance increased by ¥106.473 million, and net deferred tax assets changed from an asset of ¥424.653 million in the previous fiscal year to a liability of ¥141.199 million. - FY2025MitigatedAnnual report
「The valuation allowance decreased by ¥1,229.774 million. This decrease was mainly due to a reduction in the valuation allowance for tax loss carryforwards and other items at the consolidated subsidiary Tigerpoly Manufacturing, Inc.」
The valuation allowance decreased substantially, and net deferred tax assets changed from a net liability position in the previous fiscal year to an asset of ¥424.653 million. - FY2024MitigatedAnnual report
「The valuation allowance decreased by ¥93.310 million. This decrease was mainly due to a reduction in the valuation allowance for tax loss carryforwards and other items at the consolidated subsidiary Tigerpoly Manufacturing, Inc.」
The valuation allowance decreased by ¥93.310 million, and the valuation allowance related to tax loss carryforwards at Tigerpoly Manufacturing, Inc. also decreased from the previous fiscal year. - FY2023-Q3RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets based on the assumption that the effects of COVID-19 will persist through the current consolidated fiscal year. During the cumulative third quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
The assumption that the effects of COVID-19 will persist through the current consolidated fiscal year has been maintained and reflected in assessments of impairment of fixed assets and other matters. The Group states that there has been no material change from the previous fiscal year. - FY2023-Q1RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets based on the assumption that the effects of COVID-19 will persist through the current consolidated fiscal year. During the cumulative first quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
The assumption that the effects of COVID-19 will persist through the current consolidated fiscal year has been maintained and reflected in assessments of impairment of fixed assets and other matters. The Group states that there has been no material change from the previous fiscal year. - FY2022WorsenedAnnual report
「The valuation allowance increased by ¥263.445 million. This increase was mainly due to the additional recognition of a valuation allowance for tax loss carryforwards and other items at the consolidated subsidiary Tigerpoly Manufacturing, Inc. The full ¥696.572 million of tax loss carryforwards at Tigerpoly Manufacturing, Inc. was determined to be unrecoverable, and a valuation allowance was recognized for the entire amount.」
The valuation allowance increased by ¥263.445 million from the previous fiscal year, and a valuation allowance was recognized for the full ¥696.572 million of tax loss carryforwards at Tigerpoly Manufacturing, Inc. - FY2022-Q3RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets based on the assumption that the effects of COVID-19 will persist through the following consolidated fiscal year. During the cumulative third quarter of the current consolidated fiscal year, this assumption described in the annual securities report for the previous consolidated fiscal year was changed, but the impact was immaterial.」
The assumption that the effects of COVID-19 will persist through the following consolidated fiscal year has been maintained and reflected in assessments of impairment of fixed assets and other matters. The impact of the change in assumption from the previous fiscal year was stated to be immaterial. - FY2022-Q2RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets based on the assumption that the effects of COVID-19 will persist through the current consolidated fiscal year. During the cumulative second quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
The assumption that the effects of COVID-19 will persist through the current consolidated fiscal year has been maintained and reflected in accounting estimates. The Group states that there has been no material change from the previous fiscal year. - FY2022-Q1RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets based on the assumption that the effects of COVID-19 will persist through the current consolidated fiscal year. During the cumulative first quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
Accounting estimates are made based on the assumption that the effects of COVID-19 will persist through the current consolidated fiscal year, and the Group states that there has been no material change from the previous fiscal year. - FY2021WorsenedAnnual report
「The valuation allowance increased by ¥122.104 million. This increase was mainly due to the additional recognition of a valuation allowance for tax loss carryforwards and other items at the consolidated subsidiary Tigerpoly Manufacturing, Inc. The full ¥491.448 million of tax loss carryforwards at Tigerpoly Manufacturing, Inc. was determined to be unrecoverable, and a valuation allowance was recognized for the entire amount.」
The valuation allowance for the recoverability of deferred tax assets increased by ¥122.104 million from the previous fiscal year, and a valuation allowance was recognized for the full ¥491.448 million of tax loss carryforwards at the U.S. subsidiary. - FY2021-Q3Changes in accounting assumptionsAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets and the recoverability of deferred tax assets based on the assumption that the effects of COVID-19 will persist through the following consolidated fiscal year. During the cumulative third quarter of the current consolidated fiscal year, this assumption described in the annual securities report for the previous consolidated fiscal year was changed, but the impact was immaterial.」
The assumption was changed to one that the effects of COVID-19 would persist through the following consolidated fiscal year, and impairment of fixed assets and the recoverability of deferred tax assets are being assessed. The impact of the change in assumption was stated to be immaterial. - FY2021-Q2RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets and the recoverability of deferred tax assets based on the assumption that the effects of COVID-19 will subside during the current consolidated fiscal year. During the cumulative second quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
The Group assesses impairment of fixed assets and the recoverability of deferred tax assets based on the assumption that the effects of COVID-19 will subside during the current consolidated fiscal year, and states that there has been no material change in the assumption from the previous fiscal year. - FY2021-Q1RestatedAnnual report
「The Group reflects accounting estimates in its accounting treatment by assessing indicators of impairment of fixed assets and the recoverability of deferred tax assets based on the assumption that the effects of COVID-19 will subside during the current consolidated fiscal year. During the cumulative first quarter of the current consolidated fiscal year, no material changes were made to this assumption described in the annual securities report for the previous consolidated fiscal year.」
The Group assesses impairment of fixed assets and the recoverability of deferred tax assets based on the assumption that the effects of COVID-19 will subside during the current consolidated fiscal year, and states that there has been no material change in the assumption from the previous fiscal year. - FY2020First statedAnnual report
「Because the recoverability of deferred tax assets depends on estimates of future taxable income, if the conditions or assumptions underlying those estimates change and future taxable income declines, deferred tax assets may be reduced and tax expenses recognized.」
The recoverability of deferred tax assets, which depends on estimates of future taxable income, was identified as a risk for the first time. In FY2020, the valuation allowance increased by ¥475.327 million, and a valuation allowance was recognized for the full ¥284.404 million of tax loss carryforwards at the U.S. subsidiary.