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18 minutes ago, Toon1892 said:

Football clubs do not amortise transfer fees monthly. It is daily. Sorry.

 

Sorry but you’re just wrong here. Even if you were correct and it was monthly you round to the nearest month. Therefore if a player was signed on 30 June 2024, the months charge would be recognised in July 2024 given the majority of the first contractual month falls in July 2024. But in practice this isn’t how it works. It is done daily.

 

 

 

 

I try to avoid getting geeky on here but if you go technical then FRS102 is silent on the period (day/week/month) other than it being over the UEL (or contract length here) so you defer to management judgement and estimates.

 

I've been doing this a long time both as an auditor and then trough to CFO, you would apply a daily calculation to financial assets but for the vast majority of PPE or intangibles it is monthly, your depreciation or amortisation charge would be equal across the 12 months and not higher in May than February.

 

And I will go all Billy Big Bollocks here, but I did audit Wayne Rooney's amortisation schedule in 2005 and that was a monthly calculation.

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16 minutes ago, NSG said:

Maybe we should set up a thread for us chartered accountants to discuss this?
 

Would be the least viewed thread on the forum but would keep us three happy :lol: 

 

It would no doubt have the highest ratio of lurkers to posters guaranteed

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5 minutes ago, Colos Short and Curlies said:

 

I try to avoid getting geeky on here but if you go technical then FRS102 is silent on the period (day/week/month) other than it being over the UEL (or contract length here) so you defer to management judgement and estimates.

 

I've been doing this a long time both as an auditor and then trough to CFO, you would apply a daily calculation to financial assets but for the vast majority of PPE or intangibles it is monthly, your depreciation or amortisation charge would be equal across the 12 months and not higher in May than February.

 

And I will go all Billy Big Bollocks here, but I did audit Wayne Rooney's amortisation schedule in 2005 and that was a monthly calculation.

Austin Powers Nerd GIF

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8 minutes ago, Colos Short and Curlies said:

 

I try to avoid getting geeky on here but if you go technical then FRS102 is silent on the period (day/week/month) other than it being over the UEL (or contract length here) so you defer to management judgement and estimates.

 

I've been doing this a long time both as an auditor and then trough to CFO, you would apply a daily calculation to financial assets but for the vast majority of PPE or intangibles it is monthly, your depreciation or amortisation charge would be equal across the 12 months and not higher in May than February.

 

And I will go all Billy Big Bollocks here, but I did audit Wayne Rooney's amortisation schedule in 2005 and that was a monthly calculation.

No it’s not silent in FRS102. A balance sheet is at the end of a day. A general ledger has daily periods.

 

The accounting policy clearly states that it is spread over the life of the contract. If you weren’t doing it daily you could argue annual recognition is spreading it over the lifetime of the contract but we both know this isn’t the case. 


Depending on the amount of PPE or intangibles and whether they are material you may get away with doing it monthly. I work with mainly listed entities though and companies with £100m + turnover. These are done daily. The risk of an error being material is too high to do monthly.

 

Smaller businesses that don’t require audits or with a relatively small amount of PPE/ IA’s can do it monthly as it will be immaterial.

 

Given the main cost in the accounts is player costs (transfers and wages) there isn’t a chance that it is done monthly. There is no auditor in the world that would sign off on that. The risk of material misstatement is too high.

 

I have done quite a few football DD deals over the last few years. As a chartered accountant I can’t say who as it will breach confidentiality and it is now all done daily. Perhaps it’s changed since 20 years ago?

 

If you are a chartered accountant I’m surprised you’re telling people your clients. Quick way to get struck off?

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How many points would we lose for breaking PSR and by what amount? Like if it’s just one year, and £5m and say 4 points, surely it’s worth breaking to get a player who will be key for many years? 

 

Granted it may be what costs UCL, but I’d rather roll that dice and get a player in. Can’t be thrown out of cups for breaking PSR.

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2 minutes ago, The Prophet said:

Interesting comments from Howe on Dummett and Ritchie. He said they didn't play in case they're released and need to find new clubs.

He did? 
 

:tobey:

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2 minutes ago, The Prophet said:

Interesting comments from Howe on Dummett and Ritchie. He said they didn't play in case they're released and need to find new clubs.

Read the room Prophet. It’s all about accountants fighting right now

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As others have said - I wouldn't go anywhere near DCL. We'd be swapping one sick-note striker for a slightly younger one. Lad is a good player, but just can't be relied on.

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23 minutes ago, Sibierski said:

How many points would we lose for breaking PSR and by what amount? Like if it’s just one year, and £5m and say 4 points, surely it’s worth breaking to get a player who will be key for many years? 

 

Granted it may be what costs UCL, but I’d rather roll that dice and get a player in. Can’t be thrown out of cups for breaking PSR.

The reality is it’s difficulty to break it for one year only. If you sign 4 expensive players on high wages for 5 years, unless you sold players each of those years for profit or increased revenue drastically you’d be looking at a 6 point deduction each year. Rather than just a single 6 points deduction. It then defeats the point in trying to do it.

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The more I think about DCL, the more it could make sense. 
 

Given Everton’s financial position there’s no way they’re not selling him if he’s not signing a new contract. What would the going rate be given he’s only got one year left? I’d guess at 20/25m.

 

I totally understand the concern about his injury record, but last season he made 32 league appearances which was more than the likes of Haaland, Isak, Richarlison and obviously Wilson. And his biggest injury was a broken cheekbone, which feels more ‘unlucky’ than a muscle injury.

 

I genuinely think he’s one of those players where the perception of him would change if we signed him, in a similar way to AG, albeit for different reasons.

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Just now, SteV said:

The more I think about DCL, the more it could make sense. 
 

Given Everton’s financial position there’s no way they’re not selling him if he’s not signing a new contract. What would the going rate be given he’s only got one year left? I’d guess at 20/25m.

 

I totally understand the concern about his injury record, but last season he made 32 league appearances which was more than the likes of Haaland, Isak, Richarlison and obviously Wilson. And his biggest injury was a broken cheekbone, which feels more ‘unlucky’ than a muscle injury.

 

I genuinely think he’s one of those players where the perception of him would change if we signed him, in a similar way to AG, albeit for different reasons.

I agree 

 

I think Howe would transform him 

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47 minutes ago, timeEd32 said:

This is far more interesting than talking about DCL.


All about CDEL than DCL nowadays.

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While DCL wouldn't have been my first choice, he's 27 - very good in the air and is an all arounder who Howe could work his magic with. If we could get him for a good price, cool with me. I trust Howe to make the right calls on players. 

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Can MGW play on the right? Seems like a "proper 10"-type player? Although him tucked inside with a prime Tripps (alas) overlapping on the outside would be awesome. 

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