Recoverability of Deferred Tax Assets
First written in FY2017. 8 of 9 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2025.
Japan Display moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 20 of 61 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「The valuation allowance increased by ¥23,450 million. The main components of this increase were ¥8,776 million for tax loss carryforwards, ¥4,682 million for the increase in the valuation allowance related to impairment losses, and an additional ¥14,673 million recognized for the total valuation allowance related to deductible temporary differences and other items.」
The valuation allowance amounted to ¥252,638 million, while the allowance related to tax loss carryforwards amounted to ¥215,537 million, indicating that the risk concerning the recoverability of deferred tax assets had increased from the previous period. - FY2024WorsenedAnnual report
「The valuation allowance increased by ¥13,462 million. This was mainly due to the additional recognition of a ¥15,234 million valuation allowance related to tax-loss carryforwards.」
The valuation allowance was ¥229,187 million and tax loss carryforwards were ¥207,107 million, further increasing the risk concerning the recoverability of deferred tax assets. - FY2023WorsenedAnnual report
「The valuation allowance increased by ¥4,906 million. This was mainly because an additional valuation allowance of ¥6,357 million was recognized for tax loss carryforwards.」
The valuation allowance increased to ¥215,725 million, while tax loss carryforwards also reached ¥191,872 million. The risk concerning the recoverability of deferred tax assets increased. - FY2022WorsenedAnnual report
「The valuation allowance increased by ¥17,441 million. This was mainly because an additional valuation allowance of ¥21,028 million was recognized for tax loss carryforwards.」
An additional valuation allowance was recognized for tax loss carryforwards, bringing tax loss carryforwards to ¥185,488 million and the valuation allowance to ¥210,818 million. - FY2020WorsenedAnnual report
「The valuation allowance increased by ¥32,464 million. This was mainly due to the additional recognition of valuation allowances of ¥29,370 million for tax loss carryforwards and ¥1,916 million for impairment losses.」
The increase in the valuation allowance was ¥32,464 million, and the risk that deferred tax assets related to tax-loss carryforwards and impairment losses would not be recoverable increased further. - FY2019WorsenedAnnual report
「The valuation allowance increased by ¥25,721 million. This was mainly due to the additional recognition of valuation allowances of ¥21,159 million for tax loss carryforwards and ¥10,358 million for impairment losses.」
The valuation allowance related to the recoverability of deferred tax assets increased by ¥25,721 million, expanding the risk concerning their recoverability. - FY2018WorsenedAnnual report
「Valuation allowance △¥138,535 million」
The valuation allowance for deferred tax assets was ¥138,535 million, up from ¥70,843 million in the previous fiscal year. Total deferred tax assets decreased from ¥8,920 million to ¥783 million. - FY2018-Q1WorsenedAnnual report
「Deferred tax assets of ¥7,503 million were reversed, with the same amount recorded as adjustment to income taxes.」
In light of the effects of implementing structural reforms and the future earnings plan, the recoverability of deferred tax assets was reassessed and an additional ¥7,503 million was written off. - FY2017First statedAnnual report
「The Company decided to reverse ¥20,943 million in deferred tax assets and record the same amount as adjustment of corporate income taxes and other taxes.」
Following a careful assessment of recoverability based on future earnings plans and other factors, the company actually derecognized ¥20,943 million of deferred tax assets.