RE:RE:RE:RE:RE:ONCY accumulated deficit (Tax losses applied to a buyout)
Remember that it states in the article that you posted is that it reduces the taxable income by the amount accordingly so the company then saves whatever the amount their tax bracket is and that is the amount that the accumulated loss is. Simple accounting and that is how it is applied in business or at least that is how my accountant does it.
Also remember that the accumulated deficit is 450 million Canadian dollars.
It is the same as an rrsp contribution for example which reduces your taxable income by the amount of the contribution in the year that you contribute and you save that amount that applies to your tax bracket.
So even at 50% tax rate the realized savings or value is still only 225 million CANADIAN dollars and that is the amount that an acquirer would consider adding to the value of a BO if indeed they give full value to that amount in a negotiation.which works out to be about 2.81 Canadian dollars per share if we use 80 millions shares outstanding for example.
Anyway enough of that as we already know that numbers are skewed in accounting and moved around to create the most savings for a company.