Tax Burden Risk Related to Tax Loss Carryforwards and Deferred Tax Assets
First written in FY2024. . Latest entry: FY2025.
The whole theme swung hardest in 2026: 28 of 56 companies on the "Worse" side.
6 other companies' latest entry also says "Other".
- FY2025Tax loss carryforwards decreasedAnnual report
「As of the end of the fiscal year, the company had tax loss carryforwards. Accordingly, it was not currently subject to corporate, local or enterprise taxes based on the ordinary tax rate. If the company can no longer deduct taxable income because tax loss carryforwards are used or expire, it will incur such taxes, which may affect its operating results and financial position.」
Tax loss carryforwards declined from ¥71.479 million to ¥68.228 million, and the valuation allowance related to them declined from ¥62.219 million to ¥55.691 million. The tax-burden risk continues to be disclosed. - FY2024First statedAnnual report
「If the company can no longer deduct taxable income because tax loss carryforwards are used or expire, it will incur corporate, local and enterprise taxes based on the ordinary statutory tax rate, which may affect its operating results and financial position.」
The company newly discloses the risk of future tax burdens when tax loss carryforwards are used or expire, as well as the risk of reversing deferred tax assets if their recoverability is reassessed. Tax loss carryforwards for the fiscal year were ¥71.479 million, against which a valuation allowance of ¥62.219 million was recorded.