Risk of deferred tax asset reversals due to declining profitability
First written in FY2017. 5 of 8 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2020: 20 of 62 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「The valuation allowance decreased by ¥26,107 million. The main component of the decrease was a ¥25,355 million reduction in the valuation allowance for tax loss carryforwards.」
The valuation allowance decreased from ¥48,652 million in the previous fiscal year to ¥22,544 million. The valuation allowance for tax loss carryforwards also declined, and the figures related to the recoverability of deferred tax assets improved. - FY2025MitigatedAnnual report
「The valuation allowance decreased by ¥9,179 million. The main component of the decrease was an ¥8,497 million reduction in tax loss carryforwards.」
The valuation allowance decreased from ¥57,831 million in the previous fiscal year to ¥48,652 million, and the figures related to the recoverability of deferred tax assets improved. - FY2024MitigatedAnnual report
「The valuation allowance decreased by ¥15,001 million. The main component of the decrease was a ¥15,875 million reduction in tax loss carryforwards.」
The valuation allowance decreased from ¥72,833 million to ¥57,831 million, and the valuation allowance for tax loss carryforwards also declined. The figures related to the recoverability of deferred tax assets improved. - FY2023MitigatedAnnual report
「The valuation allowance decreased by ¥22,520 million.」
The valuation allowance decreased from ¥95,354 million in the previous fiscal year to ¥72,833 million, and the figures related to the recoverability of deferred tax assets improved. - FY2021MitigatedAnnual report
「The valuation allowance decreased by ¥10,085 million. The main components of the decrease were a ¥10,885 million decrease in the valuation allowance for tax loss carryforwards, a ¥1,241 million increase in the valuation allowance for deferred hedge losses included in the valuation allowance for total deductible temporary differences and other items, and a ¥506 million decrease in the valuation allowance for foreign tax credit carryforwards.」
The valuation allowance decreased from ¥98,734 million to ¥88,649 million, and the valuation allowance for tax loss carryforwards also declined. The figures related to the risk of deferred tax asset reversals improved. - FY2019WorsenedAnnual report
「The valuation allowance increased by ¥23,573 million. The main components of the increase were a ¥2,773 million increase in the valuation allowance for tax loss carryforwards, a ¥14,606 million increase in the valuation allowance for charter cancellation fees included in the valuation allowance for total deductible temporary differences and other items, a ¥3,631 million increase in the valuation allowance for impairment losses on investment securities, and a ¥2,042 million increase in the valuation allowance for permanently nondeductible operating payables.」
The valuation allowance increased against a backdrop of declining earning power and charter cancellation fees, expanding the risk related to the recoverability of deferred tax assets. - FY2018RestatedAnnual report
「If the Group determines that it will be unable to secure sufficient taxable income in the future due to declining earning power, it will reverse deferred tax assets and recognize a tax expense, which could adversely affect its financial condition and operating results.」
The disclosure continued to cover the risk of lower recoverability and reversal of deferred tax assets due to insufficient future taxable income. - FY2017First statedAnnual report
「If the Group determines that it will be unable to secure sufficient taxable income in the future due to declining earning power, it will reverse deferred tax assets and recognize a tax expense, which could adversely affect its financial condition and operating results.」
For the first time, the disclosure explicitly identified the lower recoverability and reversal of deferred tax assets due to insufficient future taxable income as key risks.