Why Sony’s £4 billion loss isn’t the disaster it seems

[20happyballs]

logic56 said:

NoCtiS_NoX said:

20happyballs said:

You people don't understand. It is bad. Read this.

Well them having deferred tax assets in the first place means that they've been doing bad. A deferred tax asset is created when a company operates at a loss, meaning their taxable income is negative. So instead of them having to pay taxes, the government gives them tax credit. Deferred tax assets help companies somewhat recover even though they've suffered a horrible year. I don't know how you could lose deferred tax assets but all I know is that Sony went from doing bad to doing really bad. It is still a 4 billion dollar loss. The good news however, is that this is just a one time loss. Not a plunge in Sony's sales.

But no one is saying it is good. It's still bad.

this

I'm laughing at the fact that in the other thread people were freaking out about Sony doubling their forecast lost to include money they never really had.

They really did lose all that money. That's why they had the deferred tax credit in the first place. The government was gonna let them not have to pay a certain amount of taxes, but now they do. They lost the tax credit, meaning they'll have to pay taxes with their own money.