Grooski on 23 May 2011
Its hard to say without seeing the fiscal statement.
Its either the scenario I described or its a wiping of previous deferred tax assets due to making losses in previous years. But the second scenario would involve a cash write-down - which we can't see until the statement releases.
If its the former, they are trying to be responsible and trying to prepare for a few hits in the next couple of years. If its the latter, they are merely writing off this asset from the previous years losses. It represents a special one-off cost that the market won't care too much about.
Either way its not the end of the world scenario.
