Risk of a reduction in deferred tax assets due to lower future taxable income
First written in FY2022. 2 of 3 entries say "Materialised", first in FY2023. Latest entry: FY2025.
M&A Capital Partners moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
11 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Deferred tax expense for the current consolidated fiscal year includes ¥255.016 million in expenses arising from the reduction of deferred tax assets or the reversal of previously recognized reductions, based on the assessment of the recoverability of deferred tax assets.」
Deferred tax expense of ¥255.016 million was recognized due to reductions in deferred tax assets and other items arising from the assessment of their recoverability. The risk related to a decrease in, or changes to estimates of, future taxable income was reflected as an accounting expense. - FY2023MaterialisedAnnual report
「The valuation allowance increased by ¥460.076 million. This increase was mainly due to the additional recognition of a ¥434.268 million valuation allowance for tax loss carryforwards at the consolidated subsidiary 株式会社レコフ.」
An additional ¥434.268 million valuation allowance was recognized for tax loss carryforwards at レコフ, resulting in a ¥460.076 million increase in the total valuation allowance. The risk concerning the recoverability of deferred tax assets related to estimates of future taxable income was reflected in the accounting assessment. - FY2022First statedAnnual report
「Accordingly, if estimated taxable income decreases due to a deterioration in the future operating environment or other factors, deferred tax assets may decrease and tax expenses may be recognized.」
The recoverability of deferred tax assets is assessed based on future taxable income, and the company has disclosed as a new risk that a decrease in estimated taxable income due to a deterioration in the operating environment or other factors could result in the recognition of tax expenses.