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

NiKKoM on 11 April 2012

If I squint i can't see a lot of the zero's... yes.. that will make things better.



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

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NoCtiS_NoX on 11 April 2012
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.



20happyballs on 11 April 2012
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.

The OP is saying that the loss isn't as bad as it sounds. I'm just saying that it is as bad as it sounds, and then some. Sony lost those tax assets because they've accumulated too much. The government doesn't need to give companies tax assets, but they do it anyways because the collapse of big corporations like Sony would adversely affect the economy. 





logic56 on 11 April 2012
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.



20happyballs on 11 April 2012
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. 





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Kynes on 11 April 2012

The problem is that when/if Sony America has a profit, they won't be able to use this tax assets to compensate and don't pay taxes. It's lost money, now or in 5 years, and to a company that has a big debt, all the income is needed.



HappySqurriel on 11 April 2012

At the rate things are currently degrading for Sony, they're on the fast track to Chapter 11; which will (probably) result in most current stock-holders losing their investment in the company, the bond-holders taking a massive hair-cut, the company being restructured probably by being split up, and many of the smaller companies created going out of business.

While this news of an loss of deferred tax assets is not as bad as it initially sounds, it just makes the prospect of Sony restructuring outside of bankruptcy and returning to profitability far less likely



Jay520 on 11 April 2012

Seems legit to me.



Ji99saw on 11 April 2012
sales2099 said:
Leave it to the fanatics to make this news good news lol


^^ This lol, can't argue with logic lost money is lost money no matter the circumstances



Without order nothing can exist - without chaos nothing can evolve.

"I don't debate, I just give you that work"- Ji99saw

logic56 on 11 April 2012
Ji99saw said:
sales2099 said:
Leave it to the fanatics to make this news good news lol


^^ This lol, can't argue with logic lost money is lost money no matter the circumstances

even if they didn't do anything to obtain said money

I'm sure Sony can stomach it lol