Uncertainty in Accounting Estimates Due to COVID-19
First written in FY2021-Q1. 4 of 9 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2026: 5 of 22 companies on the "Worse" side.
- FY2024SoftenedAnnual report
「Although taxable income was generated during the current consolidated fiscal year, a substantial balance of significant tax loss carryforwards remains,」
The disclosure explains that, although taxable income was generated, a significant balance of tax loss carryforwards remains, and uncertainty regarding the recoverability of deferred tax assets continues. - FY2023WorsenedAnnual report
「The Company has incurred significant tax loss carryforwards due to production adjustments by automakers associated with the prolonged semiconductor shortage, continued increases in raw-material prices and utility costs, and temporary factors during the current consolidated fiscal year, including the termination of a retirement benefit plan and the liquidation of an overseas subsidiary. Accordingly, it falls under Category 4 of the Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26).」
The disclosure explains that significant tax loss carryforwards arose against a backdrop of the semiconductor shortage, production adjustments and soaring raw-material and utility costs, placing the Company in Category 4 with respect to the recoverability of deferred tax assets. quantified=true、materialized=false。 - FY2022RestatedAnnual report
「At the end of the current fiscal year, 末吉工業株式会社, a consolidated subsidiary engaged in the metal processing business, continued to record operating losses due to a delayed recovery in orders following the decline caused by COVID-19 and semiconductor shortages, expansion of unprofitable businesses resulting from delays in raising selling prices, and delays in withdrawing from unprofitable businesses. Although the company recognized indicators of impairment, no impairment loss was recognized because undiscounted future cash flows exceeded the carrying amount.」
The Company has reflected delays in the recovery of orders due to the infection and semiconductor shortages in its estimates of impairment of fixed assets, and continues to recognize the possibility that the amount recognized may vary depending on future economic conditions. - FY2022-Q3RestatedAnnual report
「With respect to impairment of fixed assets and the recoverability of deferred tax assets, estimates and judgments are made after taking into account deteriorating profitability resulting from declining orders and other factors associated with the impact of COVID-19 in Japan and overseas. Initially, the Company assumed that it would be affected throughout the current consolidated fiscal year, but at present it assumes that the impact will continue into the following consolidated fiscal year and is making accounting estimates accordingly.」
The accounting assumption that the impact of declining orders and deteriorating profitability due to COVID-19 will continue into the following consolidated fiscal year has been maintained. - FY2022-Q2RestatedAnnual report
「There were no material changes to the assumptions and accounting estimates concerning the impact of COVID-19 described under “Significant Accounting Estimates” in the annual securities report for the previous consolidated fiscal year.」
The disclosure states that there were no material changes from the end of the previous fiscal year to the accounting assumptions, including impairment of fixed assets, made in light of the impact of COVID-19. - FY2021SoftenedAnnual report
「Our Group assumes that the impact of COVID-19 will continue during the following consolidated fiscal year. However, economic conditions in Japan and overseas are on a recovery trend, and we expect the recovery trend in orders in the automotive industry to continue.」
The assumption that the impact of the infection will continue into the following fiscal year has been maintained, but the wording has changed to indicate an expected recovery trend in economic conditions in Japan and overseas and in automotive orders. - FY2021-Q3WorsenedAnnual report
「With respect to impairment of fixed assets and the recoverability of deferred tax assets, estimates and judgments are made after taking into account deteriorating profitability resulting from declining orders and other factors associated with the impact of COVID-19 in Japan and overseas. Initially, the Company assumed that it would be significantly affected throughout the current consolidated fiscal year, but at present it assumes that the impact will continue into the following consolidated fiscal year and is making accounting estimates accordingly. The Company notes that future results may differ from these estimates and assumptions.」
The assumption regarding declining orders and deteriorating profitability due to COVID-19 has been changed to assume that the impact will extend into the following consolidated fiscal year, lengthening the assumed period of uncertainty related to the accounting estimates. - FY2021-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no material changes to the assumptions described in the additional information in the annual securities report for the previous fiscal year.」
The disclosure states that there were no material changes from the end of the previous fiscal year to the accounting assumptions regarding impairment of fixed assets and the recoverability of deferred tax assets, based on declining orders and deteriorating profitability due to COVID-19. - FY2021-Q1First statedAnnual report
「With respect to impairment of fixed assets and the recoverability of deferred tax assets, estimates and judgments are made after taking into account deteriorating profitability resulting from declining orders and other factors associated with the impact of COVID-19 in Japan and overseas. At present, the Company assumes that it will be significantly affected throughout the current consolidated fiscal year and uses forecast figures reflecting that assumption in the original business plan as its accounting estimates. The Company notes that future results may differ from these estimates and assumptions.」
The Company estimates impairment of fixed assets and the recoverability of deferred tax assets based on assumptions of declining orders and deteriorating profitability due to the infection. It also explicitly states that future actual results may differ from the current assumptions.