Recoverability of Deferred Tax Assets and Increase in Valuation Allowance
First written in FY2018. 3 of 5 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Taiho Kogyo moved to the "Worse" side of this theme in 2024, 1 year before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 11 of 14 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The valuation allowance increased by ¥2,771 million. This was mainly because the Company recorded an additional valuation allowance as deductible temporary differences related to impairment losses on fixed assets increased.」
The valuation allowance increased by ¥2,771 million as impairment losses on fixed assets increased, adding to the burden concerning the recoverability of deferred tax assets. - FY2025-H1WorsenedAnnual report
「Deferred tax assets 2,369 613」
Deferred tax assets decreased from ¥2,369 million at the end of the previous consolidated fiscal year to ¥613 million at the end of the current interim period. Income taxes—deferred changed from △¥67 million in the same period of the previous year to ¥1,980 million. - FY2024WorsenedAnnual report
「The valuation allowance increased by ¥300 million. This was mainly due to increases of ¥323 million in the valuation allowance related to tax loss carryforwards at the Company and ¥40 million in the valuation allowance related to tax loss carryforwards at Taiho Seiki Co., Ltd., a consolidated subsidiary.」
Deferred tax assets decreased from ¥3,339 million to ¥2,369 million, while the valuation allowance increased by ¥300 million. The quantified impact of risks concerning recoverability has increased. - FY2019MitigatedAnnual report
「Subtotal of valuation allowance △¥324 million △¥184 million △¥508 million」
The subtotal of the valuation allowance was ¥508 million in the current year, down from ¥520 million in the previous year. At the same time, disclosures concerning recoverability continue, including a valuation allowance of ¥324 million related to tax loss carryforwards at a U.S. subsidiary. - FY2018MaterialisedAnnual report
「The recoverability of deferred tax assets depends on estimates of future taxable income. If those estimates decline, the deferred tax assets may be reduced and tax expense may be recognized.」
The valuation allowance increased by ¥316 million year on year, including an additional recognition of ¥340 million at a U.S. subsidiary.