Mrs Barista wrote:From a financial perspective when your own club has pi$$ed away £4m to end up back playing part time teams any sort of deflection is understandable.

Keith_Lard wrote:You forgot cash flow statement.

You can only assume that he has gone against the advice of the accountants not so show players has intangible assets to inflate the value of the company.

Mild mannered Janitor wrote:The player revaluation reserve has been there since the days of Hetherington. So hardly what you'd call news.

If you think balance sheet total is a reasonable way of valuing a business, you are more clueless than you originally let on.

Mild mannered Janitor wrote:The player revaluation reserve has been there since the days of Hetherington. So hardly what you'd call news.

If you think balance sheet total is a reasonable way of valuing a business, you are more clueless than you originally let on.

Keith_Lard wrote:[b]Some businesses that rarely make a profit do rely on assets for added value to the business. Profitable businesses have the luxury of using a multiple of yearly profits as a valuation without the need for assets.

Pearson mentioned about removing it when he bought the club. He has increased it from £1,017,000. Not even premiere league football clubs do it. They only show the costs of player transfers.

In previous years, FC have included their players as 'intangible assets' as part of their balance sheet – placing a value of more than £1m on their squad last year.

From an interview with Pearson in the HDM

This helped FC report net assets of £939,000 last year, but Pearson believes those figures to have been unrealistic.

"The balance sheet had been positively enhanced and the valuation that had been put on the players on the balance sheet were unrealistic," Pearson said.

"We will be reducing them over time to what is a realistic value."

hull smallears wrote:Come on chief spit out what you really want to say and claim that this means we are making a loss. You know you want to do it, but also deep down you know that it's completely irrelevant. Just enjoy trying to get revenge on Oldham, we'll enjoy our profits.
Your crowd today will be what 6500? Mainly due to this season your frothing fans trying to prove they are the most amazing fans. Next season when you play them it will be 4500. Season after 2500. Season after 0 as you will be defunct.
Your intangible assets can be the same over all that period of time. Do one.

ccs wrote:Interesting to see that if you google key words on the hdm website, Lardy's exact same dialogue appears in the comments sections.
Sums him up nicely, I'd say,

Keith_Lard wrote:More to do with valuing a company and nothing to do with if you have made a profit or loss.