Risk of deferred tax assets becoming unrecoverable due to declining profitability
First written in FY2016. 7 of 10 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Gamecard Holdings moved to the "Worse" side of this theme in 2016, 8 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 17 of 43 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Subtotal of valuation allowance △¥879 million Deferred tax assets, net ¥354 million」
The valuation allowance increased from ¥397 million in the previous year to ¥879 million, while deferred tax assets, net, decreased from ¥467 million to ¥354 million. Concerns about recoverability have increased numerically. - 2026-06-02RestatedGeneral Meeting of Shareholders
「課税所得が生じる時期及び金額は、将来の不確実な経済状況の変動によって影響を受ける可能性があり、実際に生じた時期及び金額が見積りと異なった場合、翌連結会計年度において繰延税金資産を認識する金額に重要な影響を与える可能性があります。」
繰延税金資産の回収可能性について、将来の課税所得の不確実性が影響を及ぼす可能性を継続して記載している。 - FY2025WorsenedAnnual report
「Subtotal of valuation allowance △¥315 million △¥397 million Deferred tax assets, net ¥696 million ¥467 million」
The valuation allowance increased from ¥315 million to ¥397 million, while deferred tax assets, net, decreased from ¥696 million to ¥467 million, showing numerically that concerns about recoverability have increased. - FY2022MitigatedAnnual report
「The valuation allowance decreased by ¥352 million.」
The valuation allowance decreased from ¥1,706 million to ¥1,354 million, and ¥24 million in deferred tax assets was recognized based on expected future taxable income. Meanwhile, deferred tax assets, net, amounted to ¥121 million. - FY2021WorsenedAnnual report
「The valuation allowance increased by ¥201 million. The main reasons for this increase were a ¥152 million valuation allowance for tax loss carryforwards at the consolidated subsidiary Nippon Game Card Co., Ltd., assessed based on the recoverability indicated by expected future taxable income, and the additional recognition of a ¥56 million valuation allowance for tax loss carryforwards at the consolidated subsidiary Joyco Systems Co., Ltd.」
The valuation allowance increased from ¥1,504 million to ¥1,706 million, while deferred tax assets, net, decreased from ¥488 million to ¥330 million, indicating growing concerns about recoverability. - FY2020WorsenedAnnual report
「The valuation allowance increased by ¥179 million. The main reason for this increase was the additional recognition of a ¥161 million valuation allowance for tax loss carryforwards at the consolidated subsidiary Joyco Systems Co., Ltd.」
The valuation allowance increased from ¥1,324 million to ¥1,504 million. The impact of COVID-19 is also cited as an uncertainty affecting taxable income forecasts and the realizability of deferred tax assets. - FY2019WorsenedAnnual report
「The valuation allowance increased by ¥248 million. The main reason for this increase was the additional recognition of a ¥274 million valuation allowance for tax loss carryforwards at the consolidated subsidiary Joyco Systems Co., Ltd.」
The valuation allowance increased from ¥1,076 million to ¥1,324 million, while deferred tax assets, net, decreased from ¥493 million to ¥422 million, indicating growing concerns about recoverability. - FY2018WorsenedAnnual report
「This was mainly because deferred tax assets decreased by ¥687 million for software and long-term prepaid expenses, and by ¥503 million due to the reversal of temporary differences arising from research and development and other activities in prior years.」
Deferred tax assets, net, decreased from ¥996 million to ¥493 million, while the valuation allowance increased from ¥935 million to ¥1,076 million, indicating growing concerns about recoverability. - FY2017WorsenedAnnual report
「However, if it is determined that sufficient taxable income cannot be secured due to lower profitability or other factors, and the deferred tax assets consequently have to be written down, this could affect the Group's operating results and financial position.」
The valuation allowance increased from ¥601 million to ¥935 million, while deferred tax assets, net, decreased from ¥1,308 million to ¥996 million, indicating growing concerns about recoverability. - FY2016MaterialisedAnnual report
「As a result, deferred tax assets, net of deferred tax liabilities, decreased by ¥61 million, while income taxes adjustments recognized in the current consolidated fiscal year increased by ¥62 million and the valuation difference on other marketable securities increased by ¥1 million.」
The recoverability of deferred tax assets was reassessed due to lower profitability, resulting in an increase in the valuation allowance and a decrease in the net amount.