Fenham Mag Posted March 31, 2015 Share Posted March 31, 2015 Fuck sake, these sovereign states. People in Southampton are too clever for us. Link to post Share on other sites More sharing options...
Deuce Posted March 31, 2015 Share Posted March 31, 2015 I'm angrier about this news than I am when we lose. Link to post Share on other sites More sharing options...
Taylor Swift Posted March 31, 2015 Share Posted March 31, 2015 Does UK law allow the club to bring depreciable assets forward? Link to post Share on other sites More sharing options...
Guest reefatoon Posted March 31, 2015 Share Posted March 31, 2015 Fucks' sake. I'm off to rip all my bunting down. Link to post Share on other sites More sharing options...
Guest KingShearer Posted March 31, 2015 Share Posted March 31, 2015 Imagine if the extra net spend is from hiring Kinnear, and giving him those wages Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted March 31, 2015 Share Posted March 31, 2015 Does UK law allow the club to bring depreciable assets forward? You are supposed to review the 'carrying value' (i.e. what you have them valued at on your balance sheet) each year to see if the 'fair' value (essentially what you would be able to sell it for) is less than your carrying value - if so you revalue them. Putting this into the real world, lets say Ben Arfa was worth £2m last June in our accounts, as we got rid of him for nowt this year you could bring that loss forward. Same with MYM. You couild also revalue down if any player suffered a bad injury or had been coached by Pardew, Stone and Carver Link to post Share on other sites More sharing options...
morpeth mag Posted March 31, 2015 Share Posted March 31, 2015 Does UK law allow the club to bring depreciable assets forward? You are supposed to review the 'carrying value' (i.e. what you have them valued at on your balance sheet) each year to see if the 'fair' value (essentially what you would be able to sell it for) is less than your carrying value - if so you revalue them. Putting this into the real world, lets say Ben Arfa was worth £2m last June in our accounts, as we got rid of him for nowt this year you could bring that loss forward. Same with MYM. You couild also revalue down if any player suffered a bad injury or had been coached by Pardew, Stone and Carver But even if we re-value the entire squad to zero we wouldn't get to £25m given the fees we paid and the previous depreciation. They must have done something with the training ground / stadium values and written that down as a loss. Or maybe they've set aside a mis-selling contingency on the basis that the club are meant to operate in the entertainment business but clearly fail to deliver year after year. Link to post Share on other sites More sharing options...
midds Posted March 31, 2015 Share Posted March 31, 2015 Also, because we buy players so cheaply and offer long contracts the level of amortisation isn't as much of a factor compared to lots of other clubs. I know we spent a bit in the summer on Cabella et al but their value will only depreciate by less than 20% per year. Link to post Share on other sites More sharing options...
Kanji Posted March 31, 2015 Share Posted March 31, 2015 We didn't win the trophy: http://www.bbc.co.uk/sport/0/football/32127067 Ashley should finally get mad at Pardew. Should have made a killing on the players who just disappeared or regressed. Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted March 31, 2015 Share Posted March 31, 2015 As I mentioned earlier, bringing forward losses on pleayers will only be part of it (if at all), but once you put in £5m on player losses, £5m on training ground development, a couple of million on future activities (like the Rugby World Cup) you can soon build up to a decent sum of increased costs. Its a lot easier to increase your cost base through management judgements/calculations (all completely above board and would be audited) then it is to decrease it Link to post Share on other sites More sharing options...
UV Posted March 31, 2015 Share Posted March 31, 2015 Isn't cash in the bank something for the balance sheet rather than profit/loss? Yes thats correct, and cash in the bank doesn't lie - if you get my drift. Yeah, so income-minus-costs still makes profit, even if you stash the cash in the bank? So we would need other ways to manage the profit down. Yes, for example as has been mentioned you can mess around with asset valuations to alter your reported profit. You could decide that certain players aren't worth the value they are recorded at in the balance sheet, and stick through an extra charge for amortisation - and that will reduce your profit. You would have to come up with a plausible reason. Albert Luque is a player who I remember being given this particular treatment, although in his case there was concrete evidence that he was overvalued as (apart from being fairly crap) he was sold for a fraction of his carrying value after the balance sheet date. He was actually written off the books completely in the 06-07 accounts (a loss of £7.2m) making them look worse, and then sold for £2m in 07-08. I can imagine Ben Arfa, MYM & Santon were written off, but that's less than £10m all together, and there's not really much left to play with after that in the squad book value. There's not just the turnover increase to hide, the profit from player trading in 2013 was £10.5m, that will be bettered in these accounts with the Cabaye sale. I can only think they have revalued the fixed assets (stadium, training ground, etc) as well. Either that or, you know, hiring & firing the top Director of Football in the world don't come cheap. Link to post Share on other sites More sharing options...
Taylor Swift Posted March 31, 2015 Share Posted March 31, 2015 If they have engaged in revaluating assets to affect the profits this year and thus payable tax, they won't be able to repeat this trick next year. Revaluating to reduce taxable profit is a one-time transaction. If they don't want to show a £50m this year, they'll have to show it next year. Link to post Share on other sites More sharing options...
quayside Posted March 31, 2015 Share Posted March 31, 2015 If they have engaged in revaluating assets to affect the profits this year and thus payable tax, they won't be able to repeat this trick next year. Revaluating to reduce taxable profit is a one-time transaction. If they don't want to show a £50m this year, they'll have to show it next year. The only thing is (and sorry to muddy the waters further) the taxation system has its own rules for allowable amortisation/depreciation. It's called Capital Allowances and there are specific rules on how and how much you can reduce your taxable profit by when it comes to writing down assets. Link to post Share on other sites More sharing options...
Guest KingShearer Posted March 31, 2015 Share Posted March 31, 2015 So are we safely above the relegation zone, and not in Europe in the financial tables? Link to post Share on other sites More sharing options...
Disco Posted March 31, 2015 Share Posted March 31, 2015 Won't be anything to do with the stadium will it? Land value etc? Link to post Share on other sites More sharing options...
TaylorJ_01 Posted March 31, 2015 Share Posted March 31, 2015 Wait, are these the recent accounts or 2013/14? Thread title? Link to post Share on other sites More sharing options...
mrmojorisin75 Posted March 31, 2015 Share Posted March 31, 2015 Wait, are these the recent accounts or 2013/14? Thread title? to june 2014 i think Link to post Share on other sites More sharing options...
TaylorJ_01 Posted March 31, 2015 Share Posted March 31, 2015 why is it getting announced now? I don't understand accounting. Link to post Share on other sites More sharing options...
Disco Posted March 31, 2015 Share Posted March 31, 2015 why is it getting announced now? I don't understand accounting. It's done a year in arrears for some reason. Link to post Share on other sites More sharing options...
TaylorJ_01 Posted March 31, 2015 Share Posted March 31, 2015 why is it getting announced now? I don't understand accounting. It's done a year in arrears for some reason. All that time for a-fiddlin'. Link to post Share on other sites More sharing options...
Guest Roger Kint Posted March 31, 2015 Share Posted March 31, 2015 why is it getting announced now? I don't understand accounting. The deadline to file the accounts is/was today. Basically they give you 9 months to get them submitted. Link to post Share on other sites More sharing options...
Zero Posted March 31, 2015 Share Posted March 31, 2015 i dont think impairment of stadium or other fixed assets would be included in operating cost. I am not familiar with UK accounting standards but I would be surprised if revaluation of players are included in operating income / costs, unless the players are treated like inventory the mark to market during the end of each accounting period. Ironically that may be the real case - all players are just inventories. Link to post Share on other sites More sharing options...
quayside Posted March 31, 2015 Share Posted March 31, 2015 i dont think impairment of stadium or other fixed assets would be included in operating cost. I am not familiar with UK accounting standards but I would be surprised if revaluation of players are included in operating income / costs, unless the players are treated like inventory the mark to market during the end of each accounting period. Ironically that may be the real case - all players are just inventories. The only info we have as of now is a reported profit figure, we don't know how that splits between operating profit and ultimate bottom line. As you know impairment of any asset comes off the bottom line at some point. It will become clearer when the full accounts are published. Link to post Share on other sites More sharing options...
afar Posted March 31, 2015 Share Posted March 31, 2015 The big question for us though is how do these figures effect our spending power in the summer. It doesn't look very promising if you take the numbers as a truthful representation of where we are. The only reason we are in the black is because of the Cabaye sale. Since we already spent this profit in the summer of 14, then the only way we have to build our transfer kitty is from the sales since then, hopefully that includes Debuchy's 10mill. 5 mill for MYM, 2 mill from Santon. It's at best 17mill for the summer recruitment. Wow we are screwed, since there is so much work to be done on this squad. Link to post Share on other sites More sharing options...
Guest Roger Kint Posted March 31, 2015 Share Posted March 31, 2015 The big question for us though is how do these figures effect our spending power in the summer. It doesn't look very promising if you take the numbers as a truthful representation of where we are. The only reason we are in the black is because of the Cabaye sale. Since we already spent this profit in the summer of 14, then the only way we have to build our transfer kitty is from the sales since then, hopefully that includes Debuchy's 10mill. 5 mill for MYM, 2 mill from Santon. It's at best 17mill for the summer recruitment. Wow we are screwed, since there is so much work to be done on this squad. Not sure anyone was gullible enough to think we wouldnt be funding the promised spending spree with a few sales mind. Sissoko, Tiote plus A.N.Other will help us avoid actually paying more than we 'made' Link to post Share on other sites More sharing options...
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