Reduced Recoverability of Deferred Tax Assets Due to COVID-19
First written in FY2021-Q1. 10 of 14 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 5 of 22 companies on the "Worse" side.
- FY2026ReframedAnnual report
「In estimating deferred tax assets and deferred tax liabilities, the Group assumes that in the business of selling women's innerwear and other products, the recovery from the downturn caused by the long-standing issues of slowing activity due to the aging of door-to-door sales representatives, the decline in the number of active business personnel and the decrease in new business participants will be delayed, and that the decline in demand will continue going forward.」
The Group has shifted from its previous assessment, which focused on a temporary decline in demand caused by the pandemic, to an estimate that incorporates a structural downturn in business performance due to the aging of sales representatives, the decline in active personnel and the decrease in new participants. - 2026-06-01RestatedGeneral Meetings of Shareholders
「We assume that improvement from the prolonged weak business performance has been delayed and that the decline in demand will continue in the future.」
The company continues to use the delayed improvement in business performance and declining demand, against a backdrop of an aging door-to-door sales force, fewer active business representatives and fewer new entrants, as assumptions underlying its accounting estimates. - FY2025RestatedAnnual report
「In estimating deferred tax assets and deferred tax liabilities, the Group assumes that in the business of selling women's innerwear and other products, the recovery from the downturn caused by the long-standing issues of slowing activity due to the aging of door-to-door sales representatives, the decline in the number of active business personnel and the decrease in new business participants will be delayed, and that the decline in demand will continue going forward.」
The Group continues to apply the accounting estimate of not recognizing deferred tax assets, based on the aging of door-to-door sales representatives, the decline in active personnel, the decrease in new participants and delays in the recovery of business performance. - FY2024-Q3RestatedAnnual report
「There have been no material changes to the assumptions and accounting estimates described in the annual securities report for the previous consolidated fiscal year concerning the effects of the spread of COVID-19 and other factors.」
The Group states that there have been no material changes from the previous consolidated fiscal year to the accounting assumptions and estimates made in light of the effects of the pandemic. - FY2024-Q1RestatedAnnual report
「There have been no material changes to the assumptions and accounting estimates described in the annual securities report for the previous consolidated fiscal year concerning the effects of the spread of COVID-19 and other factors.」
The Group states that there have been no material changes from the previous fiscal year to the accounting assumptions and estimates made in light of the effects of the pandemic. - FY2023RestatedAnnual report
「In estimating deferred tax assets and deferred tax liabilities, the Group assumed that the decline in demand would continue to a certain extent and remain a factor going forward in the business of selling women's innerwear and other products, taking into account the long-standing issues of slowing activity due to the aging of door-to-door sales representatives, the decline in the number of active business personnel and the decrease in new business participants, as well as delays in recovering from the downturn caused by the spread of COVID-19. As a result, estimated taxable income is expected to decline significantly, so the Group has recognized a valuation allowance for deferred tax assets judged to be unrecoverable or not schedulable and has not recognized those deferred tax assets.」
The Group continues to apply the accounting estimate of not recognizing deferred tax assets, based on the aging of door-to-door sales representatives, the decline in active personnel, the decrease in new participants and delays in the recovery of business performance following the pandemic. - FY2023-Q3RestatedAnnual report
「The impact of COVID-19 is expected to continue to some extent, but no material impact on our group’s financial position or operating results has occurred. Accordingly, as of the end of the current quarterly consolidated accounting period, our group considers that COVID-19 has no material impact on its accounting estimates.」
Although the impact of the infectious disease is expected to continue to some extent, the company continues to determine that there is no material impact on accounting estimates as of the end of the current quarter. - FY2022Full reversal of deferred tax assetsAnnual report
「Because the company assumed that the decline in demand would continue to some extent and have an impact going forward, taxable income was expected to decline substantially. Accordingly, a valuation allowance was recognised against deferred tax assets judged to be unrecoverable or incapable of being scheduled, and the deferred tax assets were fully reversed.」
Based on lower demand caused by the infectious disease and the ageing of door-to-door sales representatives, among other factors, the company fully reversed its deferred tax assets. The accounting treatment progressed from the valuation allowance and reduction disclosed in the previous fiscal year to a full reversal. - FY2022-Q3RestatedAnnual report
「The impact of COVID-19 is expected to continue to some extent, but no material impact on the company’s financial position or operating results has occurred. Accordingly, as of the end of the current quarterly consolidated accounting period, the company considers that COVID-19 has no material impact on its accounting estimates.」
Although the impact of the infectious disease is expected to continue to some extent, the company continues to determine that there is no material impact on accounting estimates as of the end of the current quarter. - FY2022-Q1No material impact on accounting estimatesAnnual report
「The impact of COVID-19 is expected to continue to some extent, but no material impact on the company’s financial position or operating results has occurred. Accordingly, as of the end of the current quarterly consolidated accounting period, the company considers that COVID-19 has no material impact on its accounting estimates.」
Although deferred tax assets were reduced in the previous fiscal year based on the assumption of lower demand caused by the infectious disease, the company determined that there was no material impact on accounting estimates as of the end of the current quarter. It also stated that the estimates could be affected in the future depending on the timing of containment and the scope of the impact. - FY2021RestatedAnnual report
「Regarding its estimate of deferred tax assets, our group considered the impact of the spread of COVID-19 on performance and assumed that the decline in demand would continue to some extent and have an impact going forward. As taxable income was expected to decline substantially, a valuation allowance was recognised against deferred tax assets judged to be unrecoverable or incapable of being scheduled, reducing deferred tax assets.」
The company continues to disclose the valuation allowance and reduction of deferred tax assets based on lower demand caused by the infectious disease as a significant accounting estimate in the first year of consolidation. - FY2021-Q3RestatedAnnual report
「Regarding the estimate of deferred tax assets in the business selling women’s innerwear and other products, the company considered the impact of the spread of COVID-19 on performance and assumed that the decline in demand would continue to some extent from the third quarter onward and affect results through the end of the current consolidated fiscal year. As a result, taxable income was expected to decline substantially, so, beginning in the first quarter, a valuation allowance was recognised against deferred tax assets judged to be unrecoverable or incapable of being scheduled, reducing deferred tax assets. The timing of containment of COVID-19 and the scope of its impact may change substantially going forward, and if the situation is prolonged, the outcome of the above estimates may be affected.」
The company continued to disclose that deferred tax assets had been reduced from the first quarter based on the assumption of lower demand caused by COVID-19, and that prolonged infection could affect the estimates. - FY2021-Q2RestatedAnnual report
「Regarding the estimate of deferred tax assets, the company reconsidered the impact of the spread of COVID-19 on performance during the current fiscal year and assumed that the decline in demand would continue to some extent from the second quarter onward and affect results through the end of the year. As a result, taxable income was expected to decline substantially, so, beginning in the first quarter, a valuation allowance was recognised against deferred tax assets judged to be unrecoverable or incapable of being scheduled, reducing deferred tax assets.」
The second-quarter report continued to disclose the reduction of deferred tax assets implemented from the first quarter based on the assumption of lower demand caused by the infectious disease. - FY2021-Q1First statedAnnual report
「Regarding the estimate of deferred tax assets, the company reconsidered the impact of the spread of COVID-19 on performance during the current fiscal year and assumed that the decline in demand would continue to some extent from the second quarter onward and affect results through the end of the year. As a result, taxable income was expected to decline substantially, so a valuation allowance was recognised against deferred tax assets judged to be unrecoverable or incapable of being scheduled, reducing deferred tax assets.」
The decline in demand caused by COVID-19 was reflected in the accounting estimates, and a valuation allowance was recognised to reduce deferred tax assets.