City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

[EalingBlue2]

Re: City & FFP (continued)

Work on the stadium and CFA must be incurring tens of millions of Pounds. That cost will be excluded from the UEFA breakeven calculation, but will be included in City's accounts and the work, particularly on the academy will have been more significant in the last season

I would imagine all this cost was capital in nature and all will have been deferred to recognise post opening so I would imagine other than the running costs of existing youth set up there may not be much cost from build of the new complex

 

[aguero93:20]

Re: City & FFP (continued)

Work on the stadium and CFA must be incurring tens of millions of Pounds. That cost will be excluded from the UEFA breakeven calculation, but will be included in City's accounts and the work, particularly on the academy will have been more significant in the last season

I would imagine all this cost was capital in nature and all will have been deferred to recognise post opening so I would imagine other than the running costs of existing youth set up there may not be much cost from build of the new complex

It would have, say for example the academy cost £500m to build and is depreciated over 50 years, it would be a cost of £10m per season. Add in the costs of running the youth setup and the stadium expansion though and a headline loss of £20m would still see us break even for FFP purposes.

 

[Prestwich_Blue]

Re: City & FFP (continued)

Work on the stadium and CFA must be incurring tens of millions of Pounds. That cost will be excluded from the UEFA breakeven calculation, but will be included in City's accounts and the work, particularly on the academy will have been more significant in the last season

I would imagine all this cost was capital in nature and all will have been deferred to recognise post opening so I would imagine other than the running costs of existing youth set up there may not be much cost from build of the new complex

That's correct. We can exclude depreciation on capital expenditure and/or any finance cost for ongoing capital work. I'm assuming the latter doesn't apply so it depends on how much of the cost has been capitalised and is subject to depreciation.

 

[SilverFox2]

Re: City & FFP (continued)

Work on the stadium and CFA must be incurring tens of millions of Pounds. That cost will be excluded from the UEFA breakeven calculation, but will be included in City's accounts and the work, particularly on the academy will have been more significant in the last season

I would imagine all this cost was capital in nature and all will have been deferred to recognise post opening so I would imagine other than the running costs of existing youth set up there may not be much cost from build of the new complex

That's correct. We can exclude depreciation on capital expenditure and/or any finance cost for ongoing capital work. I'm assuming the latter doesn't apply so it depends on how much of the cost has been capitalised and is subject to depreciation.

Is it possible that the potential loss is within the full MCFC accounts not the UEFA prepared P&L ones?

 

[Prestwich_Blue]

Re: City & FFP (continued)

I would imagine all this cost was capital in nature and all will have been deferred to recognise post opening so I would imagine other than the running costs of existing youth set up there may not be much cost from build of the new complex

That's correct. We can exclude depreciation on capital expenditure and/or any finance cost for ongoing capital work. I'm assuming the latter doesn't apply so it depends on how much of the cost has been capitalised and is subject to depreciation.

Is it possible that the potential loss is within the full MCFC accounts not the UEFA prepared P&L ones?

That's what I'd imagine. We prepare full accounts as a limited company, then prepare an FFP return with any allowed or disallowed items taken into account.

 

[OB1]

Re: City & FFP (continued)

That's correct. We can exclude depreciation on capital expenditure and/or any finance cost for ongoing capital work. I'm assuming the latter doesn't apply so it depends on how much of the cost has been capitalised and is subject to depreciation.

Is it possible that the potential loss is within the full MCFC accounts not the UEFA prepared P&L ones?

That's what I'd imagine. We prepare full accounts as a limited company, then prepare an FFP return with any allowed or disallowed items taken into account.

The FFP return will be a bit like a tax return: you do not simply pay tax on the net profit before tax shown in the statutory (published) financial statements. A variety of adjustments are made to get to the taxable profit for corporation tax purposes (not that City are very familiar with having a taxable profit).

I would imagine that for FFP there is a return that starts with the net profit (loss) after tax on the published, audited, financial statements and then lit the adjustments required to bring to an FFP profit or loss. Depreciation will be an add back in that calculation.

 

[Wilf Wild 1937]

Re: City & FFP (continued)

Does anybody know why our accounts are released so much later than other PL clubs?
I know that we aren't listed on the stock exchange so we can release them at our leisure but surely six months on they must
have been completed by now? In the bad old days we used to release in October and the bun fight that was the AGM was
one of the highlights of the run up to Christmas. The year Frank Clark told Elliot Rashman to go and support Stockport County
and we had the bomb scare being my particular favourite!

 

[Prestwich_Blue]

Re: City & FFP (continued)

Is it possible that the potential loss is within the full MCFC accounts not the UEFA prepared P&L ones?

That's what I'd imagine. We prepare full accounts as a limited company, then prepare an FFP return with any allowed or disallowed items taken into account.

The FFP return will be a bit like a tax return: you do not simply pay tax on the net profit before tax shown in the statutory (published) financial statements. A variety of adjustments are made to get to the taxable profit for corporation tax purposes (not that City are very familiar with having a taxable profit).

I would imagine that for FFP there is a return that starts with the net profit (loss) after tax on the published, audited, financial statements and then lit the adjustments required to bring to an FFP profit or loss. Depreciation will be an add back in that calculation.

UEFA send out a toolkit, which is badically a template with explanatory notes and worked examples.

Here's the link to it: Toolkit.

 

[blueincy]

Re: City & FFP (continued)

That's what I'd imagine. We prepare full accounts as a limited company, then prepare an FFP return with any allowed or disallowed items taken into account.

The FFP return will be a bit like a tax return: you do not simply pay tax on the net profit before tax shown in the statutory (published) financial statements. A variety of adjustments are made to get to the taxable profit for corporation tax purposes (not that City are very familiar with having a taxable profit).

I would imagine that for FFP there is a return that starts with the net profit (loss) after tax on the published, audited, financial statements and then lit the adjustments required to bring to an FFP profit or loss. Depreciation will be an add back in that calculation.

UEFA send out a toolkit, which is badically a template with explanatory notes and worked examples.

Here's the link to it: Toolkit/url].

Why is it it doesn't work when go to click on it..
[url]http://www.tff.org/Resources/TFF/Documents/000013/TFF/Kulup-Lisans/UEFA-CL-FFP-IT-Solution-Toolkit-2013.pdf

 

[Neville Kneville]

Re: City & FFP (continued)

The FFP return will be a bit like a tax return: you do not simply pay tax on the net profit before tax shown in the statutory (published) financial statements. A variety of adjustments are made to get to the taxable profit for corporation tax purposes (not that City are very familiar with having a taxable profit).

I would imagine that for FFP there is a return that starts with the net profit (loss) after tax on the published, audited, financial statements and then lit the adjustments required to bring to an FFP profit or loss. Depreciation will be an add back in that calculation.

UEFA send out a toolkit, which is badically a template with explanatory notes and worked examples.

Here's the link to it: Toolkit/url].

Why is it it doesn't work when go to click on it..
<a class="postlink" href="http://www.tff.org/Resources/TFF/Documents/000013/TFF/Kulup-Lisans/UEFA-CL-FFP-IT-Solution-Toolkit-2013.pdf" onclick="window.open(this.href);return false;">http://www.tff.org/Resources/TFF/Docume ... t-2013.pdf</a>

Try it now.