Mrs Barista wrote:What was the value of the P&L reserve when Pearson took over in 2011?
The value of players impacts the revaluation reserve not the P&L.
Hilarious.
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Hull FC showed a profit of £32,000 when Pearson took over the club.
Are you stating that Pearson took on £2 million pounds worth of debt when buying the company?
Who carried out due diligence on his behalf if so?
The loss of £2.7 million has been achieved on his watch.
Any depreciation in assets is shown on the P&L account.
So if Pearson followed the accountants recommendations and didn't
show the players as intangible assets it would need to be shown on the profit and loss accounts for that financial period. You may want to look up the term reducing balance or straight line method when dealing with company assets and how it is shown on the profit and loss account.
You are not very good are you.
In your own time...
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