Actually it 'potentially' does. Especially if you were required to remove them from your balance sheet.

If they were written off the balance sheet then this would mean the write down would either need to be shown as a cost in the P&L account or alternatively written off directly to reserves.

The thought has crossed my mind that the profit generated by FC for 2008 could potentially be purely due to an increase in the valuation of the players.

I am only summising and I wouldn't think this is likely, but you never know. Then again given last season I would think a reduction in the value of the players would be much more likely!!

Not at all.

The poster was confused about an accounting issue related to Hull FC's accounts. Thought I was helping that's all

Not at all. Just thought of our squads worth.
£920,000

The revaluation reserve. Which is completely separate to the Profit and Loss reserve, you mean.





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.

The sort of "robust business model" that involves hiring a coach from Netto's, saves shed loads of cash by ripping off the fans and staying well under the salary cap by keeping the cash in order to post a profit only to go and buy it's players from the Antiques Road Show? - No thanks.

I agree the coach is an unnecessarily cheap option, but I'd settle for FC's balance sheet (which shows half your level of debt), 5 years of profitability, and independent credit rating over yours any day. Admittedly you've made some great investment decisions, though, like the £50,000 Hudgell said was spent on Saltend facilities.



As for ripping the fans off, that'd be charging £60 for a 2010 membership scheme in July 2009 that according to your chairman the fans don't understand, wouldn't it? Or ordering a £5 pair of socks from your website and automatically having a basket total of £10.50 - £5 to post them (a pair of socks!

) plus a default donation you have to opt out of.

Anyway, playingwise we're both on zero points, aren't we?

Nice!

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.

I wouldn't have thought the playing staff of any club had a residual value, it's not like football where transfer fees are the norm. In RL there are very few players who actually move for a transfer fee.

In a way the playing staff should be classed as a business liability as if a club gets to the point where it would need to cash in this asset it would more than likely just let the player go just to get the wage bill down.

Oh dear.

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.

If only Vince was here to sort this mess out for us.

Did you ring them ?

I don't know, Chillibeano seems to be sorting out Mrs Barista's inaccurasies

Good thread this. Any chance, GML, of merging this with something on www.accountantsarenotdull.com ?

Good thread this. Any chance, GML, of merging this with something on www.accountantsarenotdull.com ?

Rubbish. Why not download the accounts? You can see that the valuations impact the balance sheet only.

Fixed assets. 280,000 (within tangible fixed asset note in accounts to 2007)
Intangibles (player valuations) 942,500
Total. 1,222,500 Assets in balance sheet November 2008

Revaluation reserve 1,222,500 in balance sheet November 2008

Perhaps you can articulate the p&l impacts of these equal and opposite balance sheet items?