Risk to the recoverability of deferred tax assets due to deteriorating performance
First written in FY2021. 3 of 7 entries say "Materialised", first in FY2022. Latest entry: 2026-10-09.
Chiyoda moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 9 of 17 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- 2026-10-09MaterialisedRevision of earnings forecasts
「Because the reversal of deferred tax assets also affected adjustment of income taxes, interim net income attributable to owners of the parent was ¥130 million, ¥1,119 million below the previously announced forecast.」
The reversal of deferred tax assets materialized as an actual factor behind interim net income falling short of plan. - FY2026WorsenedAnnual report
「The valuation allowance increased by ¥443 million. This increase was mainly due to an increase in valuation allowances for tax loss carryforwards.」
The risk concerning the recoverability of deferred tax assets materialized as a ¥443 million increase in valuation allowances due to the increase in valuation allowances for tax loss carryforwards. - 2026-04-10MaterialisedRevision of earnings forecasts
「In addition, after carefully examining deferred tax assets based on future business plans, we reversed approximately ¥500 million of deferred tax assets and recorded the same amount as adjustment of income taxes, causing operating income, ordinary income and net income to fall below plan.」
The reversal of approximately ¥500 million of deferred tax assets was carried out, and the risk concerning the recoverability of deferred tax assets materialized as an actual earnings impact. - FY2024WorsenedAnnual report
「The valuation allowance increased by ¥271 million. This increase was mainly due to the additional recognition of valuation allowances for tax loss carryforwards at the Company and certain consolidated subsidiaries.」
Additional valuation allowances were recognized for tax loss carryforwards, increasing the valuation allowance by ¥271 million. - FY2023WorsenedAnnual report
「The valuation allowance increased by ¥960 million. This increase was mainly due to the additional recognition of valuation allowances for tax loss carryforwards at the Company and certain consolidated subsidiaries.」
Additional valuation allowances were recognized for tax loss carryforwards, and the risk concerning the recoverability of deferred tax assets materialized as an additional increase in valuation allowances. - FY2022MaterialisedAnnual report
「The valuation allowance increased by ¥1,950 million. This increase was mainly due to the additional recognition of valuation allowances for tax loss carryforwards at the Company and certain consolidated subsidiaries.」
Additional valuation allowances were recognized for tax loss carryforwards and other items, and the risk concerning the recoverability of deferred tax assets materialized as an actual increase in valuation allowances. - FY2021First statedAnnual report
「The Group recognizes deferred tax assets related to tax loss carryforwards and deductible temporary differences after assessing their recoverability based on estimates of taxable income derived from business plans for a certain future period. However, if estimates of future taxable income change significantly due to the achievement status of the business plans or other factors, deferred tax assets may decrease, potentially affecting the Group’s financial position and performance.」
The company identifies as a separate risk the possibility that estimates of taxable income may change depending on performance and the achievement of business plans, resulting in a reduction in deferred tax assets.