I know the basic that is calculated for the length of contract. Lets use Walker's transfer and lets use round numbers.
So lets say he cost us 50m pounds, 5 year contract, wages 100k per week. (These probably are not accurate, doesnt matter now.)
Every year in next 5 years he costs us 10m in amortization and 5m in wages. Thats clear. So 15m a year.
Question 1:
What happens if after 3 seasons he signs for extra 2 more years. After 3 seasons his "value" would be 20m pounds, as 10-10m cost for each of his last two years but he adds 2 more years to his contract. How is that calculated from that point?
Question 2:
What happens if after 3 seasons we sell Walker to China for 50m pounds?
His value is again 20m pounds, we sell him for 50m. How is it accounted? Do we still have amortization cost 10-10m pounds in his 4th/5th year of contract on the books and a one lump sum transfer income of 50m after 3 seasons?
Or we just deduct that actual value from the incoming fee so 50m-20m, and we have a transfer profit of 30m in that year's account for him?
So lets say he cost us 50m pounds, 5 year contract, wages 100k per week. (These probably are not accurate, doesnt matter now.)
Every year in next 5 years he costs us 10m in amortization and 5m in wages. Thats clear. So 15m a year.
Question 1:
What happens if after 3 seasons he signs for extra 2 more years. After 3 seasons his "value" would be 20m pounds, as 10-10m cost for each of his last two years but he adds 2 more years to his contract. How is that calculated from that point?
Question 2:
What happens if after 3 seasons we sell Walker to China for 50m pounds?
His value is again 20m pounds, we sell him for 50m. How is it accounted? Do we still have amortization cost 10-10m pounds in his 4th/5th year of contract on the books and a one lump sum transfer income of 50m after 3 seasons?
Or we just deduct that actual value from the incoming fee so 50m-20m, and we have a transfer profit of 30m in that year's account for him?