Quote ="Mrs Barista"Sweet baby Jesus and the orphans.
Get a copy of the accounts and check the balance sheet which includes a revaluation reserve. Just to spell it out in double-entry bookkeeping terms, the accounting entries go to fixed assets in the balance sheet, and the revaluation reserve, in the balance sheet, but not the P&L account, nor the P&L reserve.
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That’s not completely correct though is it Mrs Barista?!
There are instances within IFRS when the revaluation gain / loss goes directly through the Income Statement. For instance if a revaluation increase is reversing a previous impairment that went through the P&L.
Since the treatment of including players valuations on the balance sheet is not correct treatment in the accounts – who are we to say what is happening to any revaluation surplus or deficit anyway? That equally could be treated in a way that would best suit the ‘look’ of the accounts.
All I would say is while the clubs accounts are being qualified by the auditors it is best to take the profit figure with a pinch of salt, unless of course you get hold of a copy and can scrutinise the figures behind the profit.
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