Sony Group (TYO:6758) expects to record a significant loss of approximately 1.400 trillion yen from discontinued operations in its fiscal 2026 ending March 31, 2026 earnings following the completion of its Financial Services business spin-off.

This loss stems from the deconsolidation and reclassification of the business's accumulated other comprehensive income, according to its Tokyo bourse filing on Wednesday.

The spin-off was executed by distributing shares of Sony Financial Group as dividends in kind to shareholders. Consequently, Sony's ownership in SFGI has been reduced to 16.40%, and it is now accounted for as an equity-method affiliate.

The total carrying amount of the distributed shares was approximately 463.9 billion yen.

This accounting treatment is a non-cash reclassification that does not impact Sony's total equity, cash flows, or profit from continuing operations.