If we sign Mahrez and Jorginho today, we don't receive any benefit from them until the 18/19 season. You have to book related benefits and costs in the same financial period to give a correct picture of your finances. So the costs begin in 18/19 along with the benefits.Huh, thanks for explaining, you learn something new every day, I just assumed if we bought them now we’d have to pay now, I didn’t realize deferring payment was a thing for footballing assets.
Huh, thanks for explaining, you learn something new every day, I just assumed if we bought them now we’d have to pay now, I didn’t realize deferring payment was a thing for footballing assets.
You're still working within EMEA GAAP and IAS guidelines as the FFPR not only work within their jurisdiction but copied them verbatim in many respects.To be honest, I don't know when we'd have to actually make payment, but like I say, even if it were made immediately that cost wouldn't impact our profit and loss for this year now. You'd just be converting the cash to a prepayment on something that will be used in future years, so it's just another kind of asset that would be sat on your balance sheet. I'm not really sure where the theory came from that the clubs need to wait until the next accounting year as that kind of flies in the face of all accounting principles. Football accounting is slightly weird in some respects so i'm always hesistant to be too matter of fact about this sort of thing, but i can't see that this 30th June cut off date has any relevance here.
You're still working within EMEA GAAP and IAS guidelines as the FFPR not only work within their jurisdiction but copied them verbatim in many respects.
They're not required to revalue assets to market value beyond amortization/contract extensions as there's no accurate way to do it. The cost of an academy player is an indirect cost from the academy that's already been booked + wages and associated costs. Any sale value is taken as the market value and booked directly as profit. It's similar to R&D costs on new products.Yeah, it's just there's some weird quirks to football accounting (which I've tried to read up on but it still isn't very clear to me) that don't seem meet the requirement of accounts needing to offer a true reflection of the finances. You might know a bit more than me, but i did some reading up on the accounting treatment of club trained players (this is the main area that i've been wondering about) and because you haven't paid a fee for them, their value to the club as an asset doesn't seem to be recorded anywhere. Sorry to anyone who's finding this wildly off topic by this point!
They're not required to revalue assets to market value beyond amortization/contract extensions as there's no accurate way to do it. The cost of an academy player is an indirect cost from the academy that's already been booked + wages and associated costs. Any sale value is taken as the market value and booked directly as profit. It's similar to R&D costs on new products.
It does skew it a bit, but to be fair an internally developed asset of that kind never holds a capital value unless you intend to sell it, just a running cost and associated benefit. You could capitalise all of them but since it applies across the industry as a whole there's no real need.I get that and I understand the principle of there being no accurate way of measuring, but it just seems a bit of blind spot in a club's accounts. Say someone like Phil Foden, he's essentially an asset to City that could be sold for tens of millions of pounds, but that isn't reflected in our books because he came through the academy. Guess it's similar to how you can't capitialise internally generated "goodwill" in other industries. It just seems like it's a bit of quirk that must skew the true value of a club and the contracts it holds. I did find a really good article on it last year but i can't find it now!
Jack Wiltshire on a free would be a nice addition to the squad.
Disagree. Wouldn't want him anywhere near our club.Jack Wiltshire on a free would be a nice addition to the squad.