Recognition of Non-Operating Expenses (Foreign Exchange Losses) and Deferred Income Tax Expense in Consolidated Financial Results
GALA INCORPORATED (the Company's Korean branch) and Korean subsidiaries
The Company's Korean branch and foreign-currency-denominated receivables and other assets related to overseas sales by its Korean subsidiaries
The foreign exchange loss was mainly attributable to the appreciation of the won, which increased the yen-translated amount of won-denominated liabilities at the Company's Korean branch and decreased the won-translated amount of foreign-currency-denominated receivables and other assets related to overseas sales by its Korean subsidiaries. The deferred income tax expense was mainly attributable to the reversal of deferred tax assets associated with the use of tax loss carryforwards following the generation of taxable income, in connection with the application of tax-effect accounting.
During the current third-quarter consolidated accounting period, the Company recorded a ¥133.306 million foreign exchange loss and ¥24.665 million in deferred income tax expense. For the current third-quarter consolidated cumulative period, it recorded a ¥76.183 million foreign exchange loss as a non-operating expense and ¥104.658 million in deferred income tax expense.
The third-quarter consolidated accounting period of the fiscal year ending December 2026 (1 July 2026 to 30 September 2026) and the third-quarter consolidated cumulative period
The consolidated earnings forecast for the fiscal year ending December 2026 has not been disclosed because a reasonable estimate is difficult to calculate.
The amounts stated above are reflected in the financial results briefing for the third quarter of the fiscal year ending December 2026 announced today.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Expenses (Foreign Exchange Losses) and Deferred Income Tax Expense in Consolidated Financial Results |
| Date of occurrence | 1 July 2026 to 30 September 2026 (the current third-quarter consolidated accounting period) |
| Subject Entity | GALA INCORPORATED (the Company's Korean branch) and Korean subsidiaries |
| Target Locations / Products | The Company's Korean branch and foreign-currency-denominated receivables and other assets related to overseas sales by its Korean subsidiaries |
| Cause | The foreign exchange loss was mainly attributable to the appreciation of the won, which increased the yen-translated amount of won-denominated liabilities at the Company's Korean branch and decreased the won-translated amount of foreign-currency-denominated receivables and other assets related to overseas sales by its Korean subsidiaries. The deferred income tax expense was mainly attributable to the reversal of deferred tax assets associated with the use of tax loss carryforwards following the generation of taxable income, in connection with the application of tax-effect accounting. |
| Amount of Impact on Business Performance | During the current third-quarter consolidated accounting period, the Company recorded a ¥133.306 million foreign exchange loss and ¥24.665 million in deferred income tax expense. For the current third-quarter consolidated cumulative period, it recorded a ¥76.183 million foreign exchange loss as a non-operating expense and ¥104.658 million in deferred income tax expense. |
| Accounting period in which recognized | The third-quarter consolidated accounting period of the fiscal year ending December 2026 (1 July 2026 to 30 September 2026) and the third-quarter consolidated cumulative period |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending December 2026 has not been disclosed because a reasonable estimate is difficult to calculate. |
| Outlook | The amounts stated above are reflected in the financial results briefing for the third quarter of the fiscal year ending December 2026 announced today. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The foreign exchange loss was mainly attributable to the appreciation of the won, which increased the yen-translated amount of won-denominated liabilities at the Company's Korean branch and decreased the won-translated amount of foreign-currency-denominated receivables and other assets related to overseas sales by its Korean subsidiaries. The deferred income tax expense was mainly attributable to the reversal of deferred tax assets associated with the use of tax loss carryforwards following the generation of taxable income, in connection with the application of tax-effect accounting.