Uncertainty Regarding the Recoverability of Deferred Tax Assets
First written in FY2020. 7 of 10 entries say "Worsened", first in FY2022. Latest entry: 2026-11-02.
Nichidai moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 11 of 25 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「The valuation allowance increased by ¥179.155 million. This was primarily due to the additional recognition of valuation allowances of ¥113.212 million for tax loss carryforwards at the Company and certain consolidated subsidiaries, ¥27.083 million for inventory valuation losses at the Company, and ¥26.953 million for impairment losses.」
Although deferred tax assets amounted to ¥117.411 million, the valuation allowance increased by ¥179.155 million. Uncertainty regarding recoverability based on future taxable income and business plans has intensified in actual results. - FY2025WorsenedAnnual report
「Deferred tax assets ¥1.052 million — The valuation allowance increased by ¥52.712 million.」
Deferred tax assets decreased from ¥1.052 million in the previous fiscal year to zero, while the valuation allowance increased by ¥52.712 million. Uncertainty regarding recoverability has intensified in actual results. - FY2023WorsenedAnnual report
「Deferred tax assets decreased from ¥56.951 million in the previous consolidated fiscal year to ¥1.721 million in the current consolidated fiscal year. The valuation allowance increased by ¥245.433 million.」
The balance of deferred tax assets declined substantially, while the valuation allowance increased by ¥245.433 million. Uncertainty regarding recoverability, including estimates of future taxable income, has intensified. - FY2023-Q3WorsenedAnnual report
「This was analyzed as primarily resulting from increases of ¥96 million in cash and deposits, ¥184 million in notes and accounts receivable, ¥73 million in electronically recorded monetary claims, ¥66 million in inventories and ¥46 million in insurance fund reserves, partly offset by decreases of ¥54 million in deferred tax assets and ¥39 million in intangible assets.」
Deferred tax assets decreased by ¥54 million from the end of the previous consolidated fiscal year. The decline in the balance has accelerated amid the uncertainty regarding recoverability carried over from the previous fiscal year. - FY2023-Q2WorsenedAnnual report
「This was analyzed as primarily resulting from increases of ¥81 million in cash and deposits, ¥44 million in notes and accounts receivable, ¥54 million in inventories, ¥46 million in property, plant and equipment and ¥45 million in insurance fund reserves, partly offset by decreases of ¥22 million in deferred tax assets and ¥20 million in intangible assets.」
Deferred tax assets decreased by ¥22 million from the end of the previous consolidated fiscal year, and the decline in the balance has continued amid the uncertainty regarding recoverability carried over from the previous fiscal year. - FY2023-Q1WorsenedAnnual report
「Deferred tax assets decreased by ¥24 million」
Deferred tax assets decreased by ¥24 million from the end of the previous consolidated fiscal year. The decline in the balance has continued amid the uncertainty regarding recoverability identified in the previous fiscal year. - FY2022WorsenedAnnual report
「Recoverability of Deferred Tax Assets」
Deferred tax assets decreased from ¥168.614 million in the previous fiscal year to ¥56.951 million, while the valuation allowance for tax loss carryforwards and other items increased. Uncertainty regarding recoverability has intensified in actual results. - FY2020First statedAnnual report
「Because the recoverability of deferred tax assets depends on estimates of future taxable income, if the conditions or assumptions underlying those estimates change and future taxable income declines, deferred tax assets may be reduced and tax expenses recognized.」
The Company identifies as a risk related to significant accounting estimates the possibility that deferred tax assets may be reduced and tax expense recognized due to changes in the assumptions used to estimate future taxable income.