Accounting for Football

Journal of Business Finance & news report, 32(3) & (4), April/May 2005, 0306-686X Discussion of Accounting, paygrade and Duration of Football Player Contracts JOHN FORKER* Investment by football clubs in player contracts provides a natural taste to evaluate the mandated news report requirement that purchased intangible assets must be capitalised (ASB, FRS 10, 1997b). The meditate is well grounded for three reasons. First, the availability of diligence level transaction price data for transfer fees, second, a choice between capitalisation and amortisation of purchased intangible assets and immediate expensing was exercised in the UK prior to FRS 10, and third, in the period 19911998 provided five out of the 58 clubs included in the study did not select immediate expensing, and only three clubs switched accounting methods. The aim of the paper is to investigate whether the accounting regulation (FRS 10, ASB, 1997a: IAS 38 (Revised), IASB, 2004b: SFAS 142, FASB, 2001) that purchased intangibles must be capitalised is appropriate. In these standards the application of the asset experience criteria, that the expected future benefits from the asset are probable and pull up stakes flow to the entity, is taken to be satisfied by the cosmos of the purchase transaction (IAS 38 (Revised), 2004b, para. 21).

The authors question the adequacy of this verge of reasoning on two grounds. First, some *The author is Professor of Accounting at Queens University Belfast. Address for correspondence: privy Forker, School of Management and Economics, Queens University Belfast, Belfast BT7 1NN, Northern Ireland, UK. electronic mail: j.forker@qub.ac.uk # Blackwell Publishing Ltd. 2005, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. 587 588 FORKER assets may be so speculative as to cast doubt on the face of recovery, and second, even if the duration of the asset is longer than one course of instruction the costly procedures associated with asset valuation... If you want to get a dear essay, order it on our website: Orderessay

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