Reversal of deferred tax assets due to the prolonged impact of COVID-19
First written in FY2021-Q1. 1 of 3 entries say "Restated". Latest entry: FY2021-Q3.
Kisoji moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2019: 3 of 14 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2021-Q3MaterialisedAnnual report
「As a result, the company recorded an impairment loss on fixed assets of ¥456 million and reversed deferred tax assets of ¥958 million in the third quarter.」
Accounting estimates based on the assumption that the impact of the pandemic would persist resulted in an actual reversal of ¥958 million in deferred tax assets. The risk of additional impairment losses also materialised as a ¥456 million impairment loss on fixed assets. - FY2021-Q2RestatedAnnual report
「The company assumes that it will take until the end of the fiscal year for the impact of COVID-19 to ease and revenue to recover to pre-pandemic levels, and until the end of the following fiscal year for some central-city stores. This assumption had no accounting impact on the cumulative second quarter. The assumption is highly uncertain, and if the impact persists, additional impairment losses on fixed assets and reversals of deferred tax assets may arise.」
The company outlined the assumption that revenue recovery would take until the end of the fiscal year, or until the end of the following fiscal year for some central-city stores, and reconfirmed the risk of additional impairment losses and deferred tax asset reversals if the impact persists. - FY2021-Q1First statedAnnual report
「These assumptions involve a high degree of uncertainty, and if the impact is prolonged, additional impairment of property, plant and equipment or the reversal of deferred tax assets may arise.」
As an additional accounting impact if the effects of the pandemic persist, the possibility of reversing deferred tax assets can be identified as an independent risk for the first time.