Impact of Prolonged COVID-19 on Accounting Estimates and Deferred Tax Assets
First written in FY2021-Q3. 4 of 6 entries say "Restated". Latest entry: 2026-06-03.
The whole theme swung hardest in 2026: 5 of 23 companies on the "Worse" side.
- 2026-06-03RestatedGeneral Meeting of Shareholders
「Revenue per operating vehicle and the vehicle utilization rate at the taxi subsidiaries are the key assumptions used in the estimates.」
Regarding the recoverability of deferred tax assets, the Company identifies revenue and vehicle utilization rates at its taxi subsidiaries as key assumptions. - FY2023-Q2RestatedAnnual report
「The spread of COVID-19 has affected the Group's business activities during the second quarter of the current consolidated fiscal year. Although there is currently no clear outlook for when the pandemic will subside, passenger numbers have been trending upward since the state of emergency was lifted, showing signs of a recovery in business performance. In making accounting estimates, including judgments on whether impairment losses on the Group's fixed assets should be recognized and on the recoverability of deferred tax assets, the Group has made its judgments based on information available at the time the quarterly consolidated financial statements were prepared, assuming a gradual recovery from the second half of 2022 onward.」
While stating that the timing of the end of the pandemic is unknown, it assumed a gradual recovery from the second half of 2022 onward for accounting purposes and stated that there had been no material change from the end of the previous consolidated fiscal year. - FY2023-Q1RestatedAnnual report
「Although there is currently no clear outlook for when the pandemic will subside, passenger numbers have been trending upward since the state of emergency was lifted, showing signs of a recovery in business performance. In making accounting estimates, including judgments on whether impairment losses on the Group's fixed assets should be recognized and on the recoverability of deferred tax assets, the Group has made its judgments based on information available at the time the quarterly consolidated financial statements were prepared, assuming a gradual recovery from the second half of 2022 onward.」
While stating that the timing of the end of the pandemic is unknown, it described an increase in passenger numbers and signs of a recovery, and assumed a gradual recovery from the second half of 2022 onward for accounting purposes. It stated that there had been no material change from the end of the previous consolidated fiscal year. - FY2022-Q1RestatedAnnual report
「Although there is currently no clear outlook for when the pandemic will subside, passenger numbers have been trending upward since the state of emergency was lifted, showing signs of a recovery in business performance.」
While stating that the timing of the end of the pandemic is unknown, it described an increase in passenger numbers and signs of a recovery in business performance. There has been no material change to the accounting assumption of a gradual recovery from 2022 onward. - FY2021WorsenedAnnual report
「We have determined that COVID-19 is an event with a broad impact on the economy and corporate activities, and that significant uncertainty is included in the future business plans underlying the recoverability of deferred tax assets and in estimates of undiscounted future cash flows underlying judgments on whether impairment losses on fixed assets should be recognized.」
It explicitly stated that the impact of the pandemic created significant uncertainty regarding future business plans, the recoverability of deferred tax assets and fixed asset impairment testing. It assumed a gradual recovery in demand from 2022 onward, but stated that deviations from actual results could have a material impact on the financial statements from the following fiscal year onward. - FY2021-Q3MaterialisedAnnual report
「In making accounting estimates, including judgments on whether impairment losses on fixed assets should be recognized and on the recoverability of deferred tax assets, at the end of the second-quarter cumulative consolidated period we had made judgments based on the same assumptions as at the end of the previous consolidated fiscal year: that, based on the current recovery trend, demand would continue to recover gradually from the second half onward, on the assumption that social restrictions such as the reissuance of a state of emergency declaration due to the spread of infection would not be implemented. However, following the reissuance of the state of emergency declaration, we reconsidered these assumptions and changed them to assume that, although demand would recover gradually, the impact of these circumstances would remain for a certain period beyond the current consolidated fiscal year. Based on these assumptions, after reviewing the recoverability of deferred tax assets at the end of the third-quarter cumulative consolidated period, we reversed part of the deferred tax assets.」
Following the reissuance of the state of emergency declaration, the company changed its assumption to reflect that the impact of COVID-19 would remain for a certain period beyond the current consolidated fiscal year, and reversed part of its deferred tax assets.