Estimation Risk Relating to the Recoverability of Deferred Tax Assets
First written in FY2021. 1 of 2 entries say "Reframed", first in FY2023. Latest entry: FY2023.
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
- FY2023ReframedAnnual report
「Forecast product sales, a key assumption in the business plan, are affected by trends in the power tools and automotive industries, which are the company's main customer industries. Accordingly, if the timing and amount of actual taxable income before adjustments for temporary differences and other items differ from estimates, the amount of deferred tax assets in the consolidated financial statements for the following consolidated fiscal year could be materially affected.」
Regarding the risk associated with the recoverability of deferred tax assets, the company continues to explain that trends in its main customer industries are a key assumption. Deferred tax assets for the current period decreased from ¥13.665 million to ¥254,000. - FY2021First statedAnnual report
「In assessing the recoverability of deferred tax assets, the company schedules temporary differences and other items based on estimated taxable income before adjustments for temporary differences and other items, calculated using future business plans as the basis, and recognizes deferred tax assets to the extent that they are deemed to reduce future tax payments.」
For deferred tax assets of ¥15.818 million, recoverability is assessed based on estimates of future taxable income using product sales as the primary assumption. The company states that differences between estimates and actual results caused by trends in customer industries could have a material impact on the amount of deferred tax assets in the following fiscal year.