Sony warns of massive $3.1 billion FY2011 loss (PSN outtage $171 million)

[osamanobama]

ethomaz said:

Kasz216 said:

ethomaz said:

Kasz216 said:

ethomaz said:

Kasz216 said:

Well there was that giant earthquake... and the whole hacking thing and everything.  I wouldn't call it shocking.

The earthquake was $270 million... the PSN thing is for the next quarter.

That's just tax credits under US law (which I don't understand very well).

You mean Japanese law?

No US law... Sony is a international company.

Here explain better: http://gamrconnect.vgchartz.com/post.php?id=4063288

That's.... not right though.

The writedown is in relation to japanese tax credits.

http://newsfeedresearcher.com/data/articles_b22/sony-billion-year.html

"A non-cash charge to establish a valuation allowance of approximately 360 billion yen against certain
deferred tax assets in Japan. Sony evaluates its deferred tax assets on a tax jurisdiction basis to
determine if a valuation allowance is required. In Japan, Sony Corporation files a stand-alone tax
filing for local tax purposes and a consolidated national tax filing with its wholly-owned Japanese
subsidiaries for national tax purposes. Sony Corporation and its national tax filing group in Japan are
in a three year cumulative loss as of March 31, 2011. Under U.S. GAAP, a three year cumulative loss
is considered significant negative evidence regarding the realizability of deferred tax assets, which is
difficult to overcome, particularly given the relatively short tax loss carry forward period of seven
years in Japan and the adverse impact of the Earthquake on the near term forecast for entities in Japan.
Accordingly, Sony determined in the fourth quarter of the fiscal year ended March 31, 2011 that it
was required under U.S. GAAP to establish a valuation allowance against certain deferred tax assets
in Japan."

http://www.sony.net/SonyInfo/IR/financial/fr/10revision_sony.pdf

Under US law. Though the tax credits is from Japan.