The article noted that Japanese companies in the home digital market were showing the largest mark downs of their deferred tax assets with companies working on large infrastructure projects and Japanese trading companies also being significantly impacted.
Sony had the largest deferred tax asset write down of JPY296.5Bn or approximately USD3.7Bn at current exchange rates. This reflected Sony’s recent poor operating results from its flat screen televisions and difficulties in its US business.
Sharp and NEC also suffered significant deferred tax asset write downs again reflecting troubles in, respectively, their LCD television businesses and their mobile phone businesses.
The article noted that the recent decrease in Japanese tax rates was also a significant factor in contributing to deferred tax asset write downs.
NTT at the end of March 2011 reported a deferred tax asset of JPY1Tr (USD12.5Bn) so the impact of the Japanese tax rate reduction was correspondingly large.
The table below shows the amount of deferred tax asset write down and 31 March, 2012 post tax profit for the twenty largest companies concerned. Amounts are in USDm at JPY80=USD1.
|Rank||Company||DTA write down USDm||Post tax profit/loss USDm|
|15||JR East Japan||306||1359|
|18||JR East Japan||224||368|