Recoverability of Deferred Tax Assets and Uncertainty Regarding Future Taxable Income
First written in FY2017. 3 of 7 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Honda Motor moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
The whole theme swung hardest in 2022: 10 of 34 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Unrecognized deductible temporary differences, tax loss carryforwards and tax credit carryforwards are as follows. 546,073 566,262 377」
Unrecognized deductible temporary differences increased to ¥546,000 million, while tax loss carryforwards increased to ¥566,300 million. Uncertainty regarding future taxable income is increasing. - FY2024RestatedAnnual report
「Based on past levels of taxable income and forecasts of future taxable income during the periods in which deferred tax assets are deductible, the Company and its consolidated subsidiaries believe that the deferred tax assets as of the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year are likely to be recovered. However, the uncertainty of forecasts of future taxable income increases due to economic conditions, including market trends and foreign exchange fluctuations surrounding the Company and its consolidated subsidiaries.」
The Company reconfirmed the recoverability of deferred tax assets and the uncertainty of forecasts of future taxable income caused by market trends and foreign exchange fluctuations. - FY2023MitigatedAnnual report
「The reduction in corporate income tax expense for the current consolidated fiscal year includes ¥96,100 million in benefits arising from tax losses, tax credits or temporary differences from prior periods that had previously been unrecognized.」
Based on expectations for future taxable income, the Company recognized ¥96,100 million in previously unrecognized tax benefits. Unrecognized deductible temporary differences and tax loss carryforwards also decreased from the end of the previous fiscal year. - FY2022WorsenedAnnual report
「The deductible temporary differences, tax loss carryforwards and tax credit carryforwards for which deferred tax assets were not recognized as of the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year are as follows.」
Unrecognized deductible temporary differences increased from ¥519,300 million to ¥553,700 million, while tax loss carryforwards increased from ¥514,400 million to ¥693,300 million, expanding the balances indicative of uncertainty in future taxable income. - FY2019WorsenedAnnual report
「The corporate income tax expense for the current consolidated fiscal year includes a ¥50,322 million write-down of deferred tax assets.」
The Company recognized a ¥50,322 million write-down of deferred tax assets, and unrecognized deductible temporary differences also increased to ¥560,738 million. The uncertainty of future taxable income has materialized in the results. - FY2018RestatedAnnual report
「Based on past levels of taxable income and forecasts of future taxable income during the periods in which deferred tax assets are deductible, the Company and its consolidated subsidiaries believe that the deferred tax assets as of the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year are likely to be recovered. However, the uncertainty of forecasts of future taxable income increases due to economic conditions, including market trends and foreign exchange fluctuations surrounding the Company and its consolidated subsidiaries.」
The Company reconfirmed that the recoverability of deferred tax assets is assessed based on future taxable income and other factors, while uncertainty in forecasts due to market trends and foreign exchange fluctuations remains. - FY2017First statedAnnual report
「Based on past levels of taxable income and forecasts of future taxable income during the periods in which deferred tax assets are deductible, the Company and its consolidated subsidiaries believe that the deferred tax assets as of the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year are likely to be recovered. However, the uncertainty of forecasts of future taxable income increases due to economic conditions, including market trends and foreign exchange fluctuations surrounding the Company and its consolidated subsidiaries.」
While assessing the recoverability of deferred tax assets based on future taxable income and tax planning, the Company identified the uncertainty of forecasts caused by market trends and foreign exchange fluctuations as a risk.