Review of Rangers' Half-Year Accounts

[Bluedell 5,354]

I dont have the time to delve the depths but at one time I am sure the costs were directly taken to the P&L.

 

That being the case there would have been a change in accounting policies which would have had to have been disclosedin the notes to the financials in the year in which the change occured.

 

I don't doubt you though Bluedell, I just don't have the time to trawl through.

 

I think that We could probably go back to Advocaat's era to see the change - the likelihood is that we changed the policy to capitalisation and amortisation when SDM realised the financial state of the club was in the shitter - so to capitalise means to basically defer the cost (no direct hit to the P&L each year). Which would also defer the negative numbers in the P&L.

 

Having said all that, most other teams recognise their players as assets so capitalise and amortise, would make sense that we do too

Between 2001 and 2004 the amortisation charge was "accelerated" which resulted in the value of the players being reduced on the balance sheet. The accounting policy never changed but they had the option of increasing the charge, but from 2000 onwards the players have always been on the balance sheet.

 

I'll see if I can go further back than that, but goodness know where I have the accounts.

[Bluedell 5,354]

What WOULD make a difference though is having contracts which are structured more towards performance based.

 

You play and you get paid, you dont play you get paid less. You perform well, the team wins, you get paid more.

 

The Tims have done this and it actually motivates players to perform to their highest level - you may not get the desired performance but you likely WILL get the desired endeavour !

Do we know for sure that they have done it? I agree with you but if few other clubs are doing it, it makes it difficult for us be different as it could be offputting for players. They would probably want to go where they know theysalaries are guaranteed.

[craig 5,199]

Do we know for sure that they have done it? I agree with you but if few other clubs are doing it, it makes it difficult for us be different as it could be offputting for players. They would probably want to go where they know theysalaries are guaranteed.

 

Dont know for sure but remember either Lawell or Quinn making a statement that their players contracts were more performance based than in the past

[craig 5,199]

Between 2001 and 2004 the amortisation charge was "accelerated" which resulted in the value of the players being reduced on the balance sheet. The accounting policy never changed but they had the option of increasing the charge, but from 2000 onwards the players have always been on the balance sheet.

 

I'll see if I can go further back than that, but goodness know where I have the accounts.

 

It wouldnt be a change in accounting policy then if they had always been capitalised but the amortisation was merely "accelerated" - they just changed the duration of the amortisation, not a change in policy per se, just a change in the "asset's" life.

 

If they went from being a direct hit on income and went to a capitalisation policy then that obviously IS a change in accounting policy

[Bluedell 5,354]

It wouldnt be a change in accounting policy then if they had always been capitalised but the amortisation was merely "accelerated" - they just changed the duration of the amortisation, not a change in policy per se, just a change in the "asset's" life.

 

If they went from being a direct hit on income and went to a capitalisation policy then that obviously IS a change in accounting policy

I thought that was what I kinda said....

[Bluedell 5,354]

Dont know for sure but remember either Lawell or Quinn making a statement that their players contracts were more performance based than in the past

It wouldn't surprise me if they had achieved it to a greater extent than us.

[craig 5,199]

I thought that was what I kinda said....

 

I like hearing my own voice......

[Gazza_8 233]

I've got �£1.29 in my copper jar. Will that help?