Estimation Risk Relating to the Recoverability of Deferred Tax Assets
First written in FY2021. 1 of 3 entries say "Materialised", first in FY2023. Latest entry: FY2025.
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
20 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The valuation allowance decreased by ¥241.022 million. The main reasons were decreases in valuation allowances against tax loss carryforwards, impairment losses on investment securities and asset-retirement obligations.」
The valuation allowance decreased by ¥241.022 million and the allowance against tax loss carryforwards also declined to ¥888.239 million. Total deferred tax assets nevertheless remained zero. - FY2023MaterialisedAnnual report
「The valuation allowance increased by ¥49.973 million. The main reason was the additional recognition of a ¥56.393 million valuation allowance for impairment losses and excess depreciation.」
The valuation allowance increased by ¥49.973 million. A valuation allowance was recognized against the entire tax loss carryforward of ¥752.548 million, leaving total deferred tax assets at ¥0. - FY2021First statedAnnual report
「Recognition of deferred tax assets is estimated based on the timing and amount of taxable income generated under future business plans. These estimates may be affected by changes in uncertain future economic conditions. If the timing or amount of taxable income actually generated differs from the estimates, the amount of deferred tax assets in the consolidated financial statements for the following fiscal year could be materially affected.」
The company estimates the recoverability of deferred tax assets based on the timing and amount of future taxable income and discloses that differences from actual results could materially affect deferred tax assets in the following year. Deferred tax assets on the consolidated balance sheet were ¥118.563 million.