OUCH! MS has to write off >$6bn in Q4 to post a Q4 loss

[M.U.G.E.N]

kowenicki said:

M.U.G.E.N said:

kowenicki said:
Nice tax dodge...

Do you know the tax brackets they fall under and have avoided thanks to this or?

It would be slightly different in the UK... but thinking about it even then only if the value improved again at a later date (through some capital reliefs). 

 

So I guess its just a paper write off of an asset on the balance sheet.  Basically they are writing off the cash they paid 5 years ago for the investment.  So they spent $6bn a few years ago on nothing.  The loss was felt when they spent it in reality, here they are just confirming it was money for nothing.

Shit happens.  They can afford it.

I explained above (in response to millenium) how it would work under US GAAP. They are taking out their initial investment amount + any value added over the years etc out of the books, basically claiming the asset is impaired.

I definitely agree with the bolded. Especially given the nature of the investment