Reduced Recoverability of Deferred Tax Assets Due to COVID-19
First written in FY2020. 5 of 10 entries say "Restated". Latest entry: FY2024-Q1.
The whole theme swung hardest in 2026: 5 of 22 companies on the "Worse" side.
- FY2024-Q1MaterialisedAnnual report
「Profit attributable to owners of the parent decreased to ¥26 million, down 83.4% year on year, due to the write-down of deferred tax assets.」
A write-down of deferred tax assets occurred, and profit attributable to owners of the parent declined 83.4% year on year. - FY2023-Q3RestatedAnnual report
「During the third quarter of the current consolidated cumulative period, there were no new additional developments or material changes to the information and other matters disclosed in the annual securities report for the previous consolidated fiscal year.」
It was stated that there were no material additional developments or changes in the accounting estimates concerning the impact of COVID-19. - FY2023-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no new additional developments or material changes to the information and other matters disclosed in the annual securities report for the previous consolidated fiscal year.」
It was stated that there were no material additional developments or changes in the accounting estimates concerning the impact of COVID-19. - FY2022-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no new additional developments or material changes to the information and other matters disclosed in the annual securities report for the previous consolidated fiscal year.」
It was stated that there had been no material changes since the previous fiscal year in the accounting estimates concerning the impact of COVID-19. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no new additional developments or material changes to the information and other matters disclosed in the annual securities report for the previous consolidated fiscal year.」
It was stated that there had been no material changes since the previous fiscal year in the accounting estimates concerning the impact of COVID-19. - FY2021WorsenedAnnual report
「In light of the uncertain future business environment, including rising raw-material prices and escalating tensions between the United States and China, the company carefully assessed the recoverability of deferred tax assets and consequently wrote down ¥705 million of deferred tax assets.」
A write-down of ¥705 million in deferred tax assets occurred, and the valuation allowance under tax-effect accounting also increased. - FY2021-Q3WorsenedAnnual report
「Electronic components and electronic chemical materials related to China, where recovery from COVID-19 has been relatively rapid, are currently recovering, but the company assumes that the impact of COVID-19 will continue through and beyond the current consolidated fiscal year in other regions. Although LED modules for vending machines and equipment related to mounting systems, which are linked to capital investment, are showing gradual signs of recovery, the company expects their recovery to lag that of its other products.」
The assumption that the impact would continue through the fiscal year was expanded to assume that the effects of the pandemic would continue beyond the fiscal year. Accounting-estimate assumptions were also presented that recovery would be delayed depending on the region and product. - FY2021-Q2WorsenedAnnual report
「In making accounting estimates for the current consolidated fiscal year, the company had assumed that COVID-19 would be brought under control by the end of June 2020 and that sales would recover to pre-pandemic levels in the second half of fiscal 2020. However, COVID-19 continues to spread worldwide, and it is now difficult to foresee when it will be brought under control. The company assumes that, in regions other than those specified, the impact of COVID-19 will continue throughout the current consolidated fiscal year, and that demand for LED modules for vending machines and equipment related to mounting systems, particularly those linked to capital investment, will remain challenging.」
The assumptions were changed from the previous expectation that the pandemic would be brought under control by the end of June 2020 and demand would recover in the second half, to assumptions of continued global spread, ongoing effects during the fiscal year depending on the region, and continued weakness in capital-investment-related demand. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no new additional developments or material changes to the information and other matters disclosed in the annual securities report for the previous consolidated fiscal year.」
It was stated that there had been no material changes since the previous fiscal year in the accounting estimates concerning the impact of COVID-19. - FY2020MaterialisedAnnual report
「In light of the uncertainty surrounding the future impact of the spread of COVID-19, the company carefully assessed recoverability. As the amount of tax losses carried forward deemed unrecoverable increased, it wrote down deferred tax assets.」
Amid uncertainty over the spread of the infection, the amount of tax losses carried forward deemed unrecoverable increased, resulting in an actual write-down of deferred tax assets. The valuation allowance increased.