S____M____C____C said:
M.U.G.E.N said:
S____M____C____C said:
but sony still owes the government Y360bn in taxes for the period ending 5 years from now?
so, if it doesn't return to profit in the next couple of years, this could be quite harmful.
am i correct? this dta stuff is frying my head
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lol don't worry. I'm an Accounting student just entering his Intermediate series and this stuff still confuse the *&%^ out of me. I'm gonna do my best to answer here and if Im mistaken I would be more than happy if someone can point it out
In essense I think you are right, it all comes down to their future performance as well. They posted 2 successive years of losses so by GAAP (actually wonder if Japan uses GAAP or IFRS) they HAVE to put this tax expense in their books by law if I'm not mistaken. Overall the bottom line is, it's not as bad as it may sound initially. Also I think sony have a positive on their operating income which is important, that's the foundation. They will be fine unless some extraordinary losses like tsunami happens again.
actually wonder if the tsunami costs can be considered as extraordinary costs. It depends on whether the area affected by it has a history of such tsunamis or not.
at the end of all this jibber jabber the bottom line is sony isn't doing great, but they aren't that bad off either. Here is a nice post I found on GAF with some extra details
http://www.neogaf.com/forum/showpost.php?p=28003272&postcount=109
and also LOL at those articles in which 'analysts' claimed PSN issue will cost sony Billions (2Bn iirc)
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haha, we'll i'm an a-level business studies student at the minute so i was completely mindf**cked earlier, but i think i've got a decent grip on it now.
as a person i like to know everything, so when i don't know stuff it really annoys me. sucks.
and yea, if sony can return to profit in the next couple of years i don't believe any of this to be an issue. they are certainly much healthier now than they were a few years back due to the restructuring.
i guess they would have been mad not to write down these taxes now.
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mad and depending on the tax laws there, might have not had a choice either. But that's something I have no clue about. and many are waiting to see Thursday's financials to get a clear idea on the numbers. It should give a clear idea on where their operations are at at the moment ignoring incidents like earthquakes and such