Recoverability of Deferred Tax Assets and Tax Benefits
First written in FY2016. 4 of 9 entries say "Mitigated", first in FY2016. Latest entry: FY2024-Q2.
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
72 other companies' latest entry also says "Restated".
- FY2024-Q2RestatedAnnual report
「For income taxes for the six-month period ended Q2, the Company recognized a ¥121,348 million reduction in income tax expense following the Board of Directors' resolution at its meeting on 31 July 2023 to dissolve consolidated subsidiary Panasonic Liquid Crystal Display Co., Ltd. (hereinafter, "PLD"), file a petition to commence special liquidation proceedings and have consolidated subsidiary Panasonic Equity Management GK waive its claims against PLD.」
The Company reconfirmed that a ¥121,348 million reduction in income tax expense had been recognized following the decision to dissolve PLD, file a petition to commence special liquidation proceedings and waive claims against it. - FY2024-Q1Tax benefit and valuation allowance recognized following the decision to dissolve the liquid crystal display businessAnnual report
「The amount also included ¥131,422 million recognized as deferred tax assets as a reduction in income tax expense, because the temporary differences related to the investment in PLD were more likely to reverse within the foreseeable period as of the end of the three-month period ended Q1. It also included ¥10,074 million in valuation allowances and other amounts recognized as an increase in income tax expense following a reassessment of the recoverability of deferred tax assets of the domestic group for tax purposes.」
Following the decision to dissolve PLD and waive claims against it, deferred tax assets of ¥131,422 million were recognized, while valuation allowances and other amounts of ¥10,074 million were recognized for deferred tax assets of the domestic group for tax purposes. - FY2021-Q2RestatedAnnual report
「During the six-month period ended Q2, no significant deviation from the outlook assumed in the previous fiscal year occurred, and there were no significant changes in the assumptions used for accounting estimates.」
The Company reconfirmed that there had been no significant deviation from the previous year's assumptions or changes in assumptions regarding accounting estimates, including the recoverability of deferred tax assets, which reflected the impact of COVID-19. - FY2020WorsenedAnnual report
「Because there are no precedents to inform the accounting estimates and no generally accepted view regarding how the situation will develop or when it will subside, the estimates may differ from the subsequent actual results.」
The impact of COVID-19 was reflected in the estimate of the recoverability of deferred tax assets, but the Company explicitly stated that estimates could differ because there were no precedents or outlook for when the situation would subside. - FY2020-Q3Tax benefit and valuation allowance recognized in connection with the transfer of the semiconductor businessAnnual report
「Income taxes for the nine-month period ended Q3 and the three-month period ended Q3 included a tax benefit of ¥27,536 million recognized as a reduction in income tax expense because the Board of Directors' resolution on 28 November 2019 to transfer the semiconductor business increased the likelihood that temporary differences related to the investment would reverse. They also included a valuation allowance of ¥15,223 million recognized as an increase in income tax expense after reviewing the recoverability of deferred tax assets because certain consolidated subsidiaries would leave the domestic consolidated taxation group as a result of that resolution.」
Following the decision to transfer the semiconductor business, a tax benefit of ¥27,536 million was recognized, while a ¥15,223 million valuation allowance against deferred tax assets was also recognized in connection with leaving the domestic consolidated taxation group. - FY2020-Q2MitigatedAnnual report
「Income taxes for the six-month period ended Q2 included a tax benefit of ¥21,458 million recognized in the consolidated financial statements as a reduction in income tax expense, resulting from the Company's waiver of its claims against consolidated subsidiary MT Visual Display Co., Ltd. (hereinafter, "MTPD") in liquidation proceedings. The liquidation proceedings for MTPD were completed during the six-month period ended Q2.」
The liquidation proceedings for MT Visual Display were completed, and a tax benefit of ¥21,458 million was recognized in connection with the waiver of claims against it. - FY2020-Q1MitigatedAnnual report
「Income taxes for the three-month period ended Q1 included a tax benefit of ¥21,458 million recognized in the consolidated financial statements as a reduction in income tax expense, resulting from the Company's waiver of its claims against consolidated subsidiary MT Visual Display Co., Ltd. in liquidation proceedings.」
A tax benefit of ¥21,458 million was recognized in connection with the liquidation of MT Visual Display and the waiver of claims against it. - FY2017-Q2MitigatedAnnual report
「Income taxes for the six-month period ended Q2 and the three-month period ended Q2 of fiscal 2016 included a tax benefit of ¥18,183 million recognized as a result of reviewing the recoverability of Panasonic Corporation's deferred tax assets in the consolidated financial statements, following the Board of Directors' resolution at its meeting on 31 October 2016 to dissolve consolidated subsidiary Panasonic Plasma Display Co., Ltd. (hereinafter, "PPD"), file a petition to commence special liquidation proceedings and waive the Company's claims against PPD.」
Following the decision to dissolve PPD and waive claims against it, the Company reviewed the recoverability of deferred tax assets and recognized a tax benefit of ¥18,183 million. - FY2016MitigatedAnnual report
「This was because, in addition to the recent improvement in earnings, the decision to introduce domestic consolidated taxation improved earnings stability, making it more probable that the deferred tax assets would be realized.」
The valuation allowance against deferred tax assets was reduced by ¥132.8 billion, while the Company also stated that it could be increased if future taxable income deteriorates.