Recoverability Risk Relating to Deferred Tax Assets
First written in FY2026-H1. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Arent moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
17 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「During the consolidated fiscal year under review, the Company recognized deferred tax assets after assessing the recoverability of tax loss carryforwards and deductible temporary differences related to software transferred in connection with the absorption-type merger with 株式会社PlantStream, in which the Company was the surviving entity. Deferred tax assets amounted to ¥1,117 million.」
The Company assumed PlantStream's tax loss carryforwards and other items, increasing deferred tax assets from ¥90 million to ¥1,117 million. Exposure to recoverability risk dependent on estimates of future taxable income has expanded. - FY2026-H1First statedAnnual report
「Our group recognizes deferred tax assets for deductible temporary differences and other items that we determine to be recoverable after considering the expectation of sufficient future taxable income based on future profit plans and other factors, as well as the timing of such taxable income and tax-related restrictions. Because the recoverability of deferred tax assets depends on estimates of future taxable income, if changes in the business environment or other factors change the conditions or assumptions underlying those estimates and reduce the expected taxable income, we may write down deferred tax assets and incur higher tax expenses, which could materially affect our group's financial position and operating results.」
This newly identifies as a separate item the risk that the recoverability of deferred tax assets depends on estimates of future taxable income and that tax expenses may increase when those estimates change.