Tax-effect accounting for the transition from the consolidated taxation system to the group aggregation system
First written in FY2022-Q3. 2 of 5 entries say "Advanced", first in FY2022. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2025: 1 of 12 companies on the "Worse" side.
- FY2023-Q3RestatedAnnual report
「The Company and its consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system beginning with the first quarter of the fiscal year. Accordingly, the accounting treatment and disclosure for corporate tax, local corporate tax and tax effect accounting are prepared in accordance with the Practical Solution on Accounting Treatment and Disclosure When Applying the Group Tax Sharing System (Practical Response Report No. 42, 12 August 2021; hereinafter, “Practical Response Report No. 42”).」
The transition to the group tax sharing system, implemented since the previous quarter, and the tax-effect accounting treatment and disclosures based on Practical Response Report No. 42 have been reiterated. - FY2023-Q2RestatedAnnual report
「The Company and its consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system beginning with the first quarter of the fiscal year. Accordingly, the accounting treatment and disclosure for corporate tax, local corporate tax and tax effect accounting are prepared in accordance with the Practical Solution on Accounting Treatment and Disclosure When Applying the Group Tax Sharing System (Practical Response Report No. 42, 12 August 2021; hereinafter, “Practical Response Report No. 42”).」
The transition to the group tax sharing system, implemented since the previous quarter, and the tax-effect accounting treatment and disclosures based on Practical Response Report No. 42 have been reiterated. - FY2023-Q1AdvancedAnnual report
「The Company and its consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system beginning with the first quarter of the current consolidated fiscal year. Accordingly, the accounting treatment and disclosure for corporate tax, local corporate tax and tax effect accounting are prepared in accordance with the Practical Solution on Accounting Treatment and Disclosure When Applying the Group Tax Sharing System (Practical Response Report No. 42, 12 August 2021; hereinafter, “Practical Response Report No. 42”).」
The transition to the group tax sharing system, which had been presented as a plan in the previous fiscal year, was implemented from the first quarter of the current fiscal year, and the accounting and disclosure treatment for the related corporate taxes and tax-effect accounting progressed to the stage of following Practical Response Report No. 42. - FY2022AdvancedAnnual report
「The company plans to apply from the beginning of the following consolidated fiscal year the Practical Response Report No. 42, “Accounting and Disclosure under the Group Tax Sharing System” (12 August 2021), which prescribes the accounting and disclosure treatment for corporate and local corporate taxes and tax-effect accounting when applying the group tax sharing system.」
Regarding the transition to the group tax sharing system, the company explicitly stated that it plans to apply Practical Response Report No. 42 from the beginning of the following consolidated fiscal year, making the transition arrangements more concrete. - FY2022-Q3First statedAnnual report
「The Company and certain domestic consolidated subsidiaries have applied the treatment under Paragraph 3 of Practical Solution Report No. 39, “Accounting and Disclosure under the Transition from the Consolidated Taxation System to the Group Tax-Sharing System” (31 March 2020), for items relating to the transition to the group tax-sharing system established by the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the related review of the single-entity taxation system. Accordingly, they have not applied Paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), and have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment.」
Regarding tax-effect accounting accompanying the transition to the group tax sharing system, the company has disclosed that deferred tax assets and deferred tax liabilities are calculated based on the tax laws prior to amendment.