Isuzu 2016 Annual Report Download - page 31

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6. Income Taxes
Accrued income taxes in the balance sheets include corporation tax,
inhabitant tax and enterprise tax.
The significant components of the Company and its consolidated
subsidiaries’ deferred tax assets and liabilities as of March 31, 2016
and 2015 are as follows:
Thousands of
Millions of yen U.S. dollars
2016 2015 2016
Deferred tax assets:
Net defined benefit liability
Loss on write-down of investments
in subsidiaries and allowance for
doubtful accounts
Accrued expenses
Accrued bonus
Loss on inventory write-down
Loss carry-forward
Unrealized profit eliminated
in consolidation etc.
Others
Total gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for reduction entry
of fixed assets
Unrealized holding gain
on securities
Retained earnings in subsidiaries
Others
Total deferred tax liabilities
Net deferred tax assets
Deferred tax liabilities:
Reserve for reduction entry
of fixed assets
Unrealized holding gain
on securities
Subsidiaries’ land evaluation
Others
Net deferred tax liabilities
¥ 30,957
11,4 6 0
12,296
6,054
2,102
4,266
21,200
11,651
¥ 99,990
(21,177)
¥ 78,813
(883)
(4,474)
(6,090)
(1,585)
¥ (13,033)
¥ 65,779
(79)
(21)
(1,954)
(106)
¥ (2,161)
¥ 33,573
11,475
12,032
5,934
2,068
4,405
19,228
12,475
¥ 101,193
(22,498)
¥ 78,695
(984)
(10, 211)
(6,156)
(2,503)
¥ (19,856)
¥ 58,839
(99)
(214)
(1,954)
(478)
¥ (2,746)
$ 274,740
101,705
109,128
53,733
18,663
37,864
188,143
103,407
$ 887,387
(187,9 4 0)
$ 699,446
(7,837)
(39,713)
(54,050)
(14,069)
$ (115,671)
$ 583,775
(702)
(191)
(17,34 4)
(943)
$ (19,181)
2016 2015
Effective statutory tax rate
Tax credit
Net valuation allowance
Difference in tax rates applied at foreign subsidiaries
Loss for this fiscal year by consolidated subsidiaries
Equity in earnings of unconsolidated subsidiaries
Foreign withholding tax
Per capital levy of inhabitant tax
Retained earnings in subsidiaries
Decrease in deferred tax assets due to
change in corporate tax rates
Others
Effective tax rate
Reconciliation between the effective statutory tax rate and the
effective tax rate reflected in the accompanying consolidated statements
of income for the years ended March 31, 2016 and 2015 are as follows:
Revision of Amounts of Deferred Tax Assets and Deferred Tax
Liabilities due to Changes in Tax Rate such as Corporate Tax, Etc.
The “Act for Partial Revision of the Income Tax, etc.” (Act No.15 of
2016) and the “Act for Partial Revision of the Local Tax, etc.” (Act No.13
of 2016) were enacted on March 29, 2016 and the corporate income tax
rate has been reduced from the consolidated fiscal year beginning April
1, 2016. As a result, the effective tax rate used for the measurement
of a deferred tax asset and a deferred tax liability was changed from
32.2% for the previous fiscal year to 30.8% for deductive temporary
differences which is expected to be realized by the consolidated fiscal
year starting April 1, 2016 and 30.6% for those expected to be cleared
by the consolidated fiscal year beginning April 1, 2017 or further.
By these tax rate changes the amount of deferred tax assets
(after deferred tax liability was deducted) was decreased by 1,932
million yen ($17,149 thousands), and that of deferred income taxes,
valuation difference on other securities and unrealized gain on hedging
instruments increased by 1,882 million yen ($16,706 thousands), 230
million yen ($2,046 thousands) and 5 million yen ($44 thousands),
respectively, while accumulated adjustment for retirement benefits
decreased by 283 million yen ($ 2,518 thousands) as of and for the year
ended March 31, 2016.
In addition, deferred tax liability for re-evaluation of land decreased
by 2,285 million yen ($20,285 thousands), adding the same amount to
difference in re-evaluation of land.
35.6%
(5.3)
(4.3)
(9.5)
0.9
(1.9)
1.6
0.2
2.9
1.9
1.9
24.0%
33.0%
(4.8)
(1.2)
(4.6)
2.1
(1.6)
4.6
0.2
(0.0)
1.0
(1.7)
26.9%