Risk of a reduction in deferred tax assets due to a deterioration in the earnings outlook
First written in FY2020. 8 of 16 entries say "Restated". Latest entry: 2026-05-14.
The whole theme swung hardest in 2020: 20 of 60 companies on the "Worse" side.
- 2026-05-14OtherRevisions to earnings forecasts
「Net income attributable to owners of the parent also exceeded the previous forecast because, in addition to the factors described above, the increase in deferred income tax adjustments (income) exceeded the previous forecast after we carefully considered the recoverability of deferred tax assets for the fiscal year in light of the outlook for future performance.」
Stated that, following consideration of the recoverability of deferred tax assets, deferred income tax adjustments (income) exceeded the previous forecast. It did not state that recoverability risk had been eliminated. - FY2025WorsenedAnnual report
「The timing and amount of future taxable income may be affected by changes in future uncertain economic conditions. If the timing and amount of taxable income actually generated differ from the estimates, this may have a material impact on the amount of deferred tax assets reported in the consolidated financial statements for the following fiscal year.」
The valuation allowance increased by ¥440 million due to a decrease in future taxable income, indicating that the risk of a reduction in deferred tax assets based on the earnings outlook and other factors was again beginning to materialize. - FY2024MitigatedAnnual report
「Following a review of the recoverability of deferred tax assets, the valuation allowance for deductible temporary differences decreased because taxable income was expected to increase in the future.」
Although the risk of a reduction in deferred tax assets due to a deterioration in the earnings outlook remains, the valuation allowance decreased because future taxable income is expected to increase, and the assessment of recoverability improved from the previous fiscal year. - FY2024-Q1RestatedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that some impact will remain in fiscal 2023.」
The Company continues to assume that the impact of COVID-19 will remain to some extent in fiscal 2023 when assessing the recoverability of deferred tax assets. - FY2023RestatedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that some impact will remain in fiscal 2023.」
The Company continues to assume that the impact of COVID-19 will remain in fiscal 2023 when assessing the recoverability of deferred tax assets. - FY2023-Q3WorsenedAnnual report
「Because considerable uncertainty remains regarding the spread of the infection and the timing of its containment, the company is examining the recoverability of deferred tax assets on the assumption that the impact will continue to some extent in fiscal 2023.」
Regarding the risk of a reduction in deferred tax assets due to a deterioration in the earnings outlook, the assumption for demand recovery was pushed back to reflect some impact remaining in fiscal 2023. - FY2023-Q2RestatedAnnual report
「Given the continuing high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that some impact will remain in fiscal 2022.」
The Company continues to assume that the impact of COVID-19 will remain to some extent in fiscal 2022 when assessing the recoverability of deferred tax assets. - FY2023-Q1RestatedAnnual report
「Given the continuing high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that some impact will remain in fiscal 2022.」
The Company continues to assume that the impact of COVID-19 will remain to some extent in fiscal 2022 when assessing the recoverability of deferred tax assets. - FY2022RestatedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that some impact from COVID-19 will remain in fiscal 2022.」
The Company continues to assume that the impact of COVID-19 will remain in fiscal 2022 when assessing the recoverability of deferred tax assets. - FY2022-Q3WorsenedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company had assumed that the impact of COVID-19 would remain to some extent in fiscal 2021 and that demand would return approximately to normal levels from fiscal 2022. However, it is now assessing the recoverability of deferred tax assets and other matters on the assumption that some impact will remain in fiscal 2022 as well.」
The assumption supporting demand recovery for the recoverability of deferred tax assets was pushed back to reflect some impact remaining in fiscal 2022, increasing the risk of a reduction due to a deterioration in the earnings outlook. - FY2022-Q2RestatedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that the impact of COVID-19 will remain to some extent in fiscal 2021 and that demand will return approximately to normal levels from fiscal 2022.」
The Company continues to assume that some impact will remain in fiscal 2021 and that demand will return approximately to normal levels from fiscal 2022 when assessing the recoverability of deferred tax assets. - FY2022-Q1RestatedAnnual report
「Given the high level of uncertainty regarding the spread of the infection and the timing of its containment, the Company is assessing the recoverability of deferred tax assets and other matters on the assumption that the impact of COVID-19 will remain to some extent in fiscal 2021 and that demand will return approximately to normal levels from fiscal 2022.」
As an assumption underlying the assessment of deferred tax asset recoverability, the Company continues to expect some impact to remain in fiscal 2021 and demand to return approximately to normal levels from fiscal 2022. - FY2021-Q3MaterialisedAnnual report
「After taking into account the future earnings outlook and future earning capacity reflecting the impact of the novel coronavirus, the company recognized a tax adjustment (loss) of ¥2,270 million as a result of the reversal of deferred tax assets.」
Deferred tax assets were actually written down following a deterioration in the earnings outlook, and a ¥2,270 million deferred income tax expense was recorded. The previously disclosed possibility of a reduction has materialized. - FY2021-Q2WorsenedAnnual report
「The company recognizes deferred tax assets on the assumption that the impact of the spread of the novel coronavirus will gradually begin to ease from the second half of fiscal 2020 and that demand will generally reach a level in line with normal years in the second half of fiscal 2021.」
The assumed timing of demand recovery supporting the recoverability of deferred tax assets was pushed back to the second half of fiscal 2021, making the assumptions underlying the risk of a reduction due to a deterioration in the earnings outlook more stringent. - FY2021-Q1RestatedAnnual report
「Deferred tax assets have been recognized on the assumption that the impact of the spread of COVID-19 would subside during the first half of fiscal 2020 and recovery would begin in the second half, with demand expected to be at normal levels in fiscal 2021. There have been no material changes to the assumptions described in the previous fiscal year's Securities Report under Additional Information (Additional Recognition of Deferred Tax Assets), including assumptions regarding the future spread of COVID-19 and the timing of its containment.」
Stated that there had been no material change from the previous fiscal year in the assumptions regarding COVID-19 containment and demand recovery underlying the risk of a reduction in deferred tax assets due to a deterioration in the earnings outlook. - FY2020First statedAnnual report
「The Group regularly reviews the recoverability of deferred tax assets in light of its future earnings outlook and other factors. However, if it becomes necessary to revise the earnings outlook because of factors such as failure to meet the targets in its business plan due to a deterioration in the operating environment, deferred tax assets may be reduced, potentially affecting the Group's financial position and results of operations. The Company recognizes the potential impact as approximately ¥2.0 billion, the amount of deferred tax assets recorded at the end of the fiscal year.」
For the first time, separately identified the risk of a reduction in deferred tax assets following a review of their recoverability as a major risk, quantified at approximately ¥2.0 billion, the amount recorded at fiscal year-end.