Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (1824)	4/4/1999 10:40:00 AM
From: fut_trade	Read Replies (1) \| Respond to of 3902

Accounting change may hit Japan Sony profits-paper TOKYO, April 4 (Reuters) - Japanese electronics giant Sony Corp may face a $900-million drop in its consolidated net profit in the next business year through March 2001 due to a change in U.S. accounting procedures affecting movie advertising, a Japanese daily reported on Sunday. The Nihon Keizai Shimbun reported that a decision by the executive committee of the American Institute of Certified Public Accountants to make it mandatory for movie companies to book all film marketing expenses three months after a movie's release would lead to a dip in Sony's profits. The current system allows movie companies to count the advertising costs in installments over several years as they continue to gain revenue through video sales and other ancillary markets, it said. The new accounting system has been presented to the major studios and the accounting body could implement the revision as early as October, the paper reported. Sony estimated that the change would cost it and its studio Sony Pictures Entertainment $900 million in extra costs and would book the costs in next business year's earnings report, it said. Sony group net profits for the nine months ending December 31, 1998 were 198.37 billion yen ($1.65 billion) compared with 201.31 billion yen for the same year-ago period. Sony officials could not be immediately reached for comment. ($1=120 Yen)