Recoverability of Deferred Tax Assets and Tax Audits
First written in FY2018. 2 of 3 entries say "Mitigated", first in FY2022. Latest entry: FY2023.
The whole theme swung hardest in 2020: 5 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Following a review of the recoverability of deferred tax assets based on an improvement in the outlook for the company's ability to generate future taxable income, deferred tax assets were recognized for deductible temporary differences relating to inhabitant tax and enterprise tax.」
In light of the improved outlook for future taxable income, the company advanced the recognition of deferred tax assets and improved the status of their recoverability. - FY2022MitigatedAnnual report
「Following a review of the recoverability of deferred tax assets based on an improvement in the long-term outlook for the Group's ability to generate future taxable income, the effective tax rate for the fiscal year improved relative to the statutory effective tax rate, primarily because deferred tax assets were recognized for deductible temporary differences that had not previously been recognized.」
Following an improvement in the outlook for future taxable income, the company recognized deferred tax assets for previously unrecognized deductible temporary differences. - FY2018First statedAnnual report
「If further deterioration in market conditions or other circumstances is expected to cause the NEC Group's future taxable income from its business and tax planning during the carryforward period to fall below expectations, the amount of deferred tax assets considered recoverable may be reduced.」
The company described as risks the impact on deferred tax assets and profit of lower future taxable income, changes in tax rates and accounting standards, and audits and investigations by tax authorities in various countries.