| Amortisation - the new buzz word..... 05:28 - Jul 4 with 1773 views | bobbyramsey |
Can we, can't we? I'm seeing differing opinions from various posters.
And why are people only mentioning it now, as if it's some new "fangled" accounting technique that has only just been discovered. Was amortisation not available in the lower leagues or something? I would imagine it's been used throughout football since the year dot. [Post edited 4 Jul 2024 5:29]
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| Amortisation - the new buzz word..... on 05:39 - Jul 4 with 1704 views | Battersea_Blue |
It's standard practice, not just in football, but all businesses will amortise an asset over the length of useful (or contractual) time.
It's the same as buying a new computer system, for say £250,000. You'll need the cash up front to buy it, but in the accounts it'll be written off, or amortised, over 4 or 5 years, so the p & l doesn't take a massive hit plus the asset (less amortisation/write off) will be a positive on the balance sheet. |  | | |
| Amortisation - the new buzz word..... on 06:14 - Jul 4 with 1651 views | bobbyramsey |
| Amortisation - the new buzz word..... on 05:39 - Jul 4 by Battersea_Blue |
It's standard practice, not just in football, but all businesses will amortise an asset over the length of useful (or contractual) time.
It's the same as buying a new computer system, for say £250,000. You'll need the cash up front to buy it, but in the accounts it'll be written off, or amortised, over 4 or 5 years, so the p & l doesn't take a massive hit plus the asset (less amortisation/write off) will be a positive on the balance sheet. |
Yeah, I know. That's what I'm saying, why are people suddenly all talking about it as if they've only just discovered it.
Nobody mentioned amortisation when we were in the leagues below, I expect we've been using it for ever. Is it because the numbers have suddenly got bigger? | | | |
| Amortisation - the new buzz word..... on 06:52 - Jul 4 with 1576 views | TractorWood |
| Amortisation - the new buzz word..... on 05:39 - Jul 4 by Battersea_Blue |
It's standard practice, not just in football, but all businesses will amortise an asset over the length of useful (or contractual) time.
It's the same as buying a new computer system, for say £250,000. You'll need the cash up front to buy it, but in the accounts it'll be written off, or amortised, over 4 or 5 years, so the p & l doesn't take a massive hit plus the asset (less amortisation/write off) will be a positive on the balance sheet. |
You'd depreciate a computer.
You ammortise intangible assets like goodwill.
Similar concepts just different words. You also generally have to assess intangibles for impairment. [Post edited 4 Jul 2024 7:00]
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| Amortisation - the new buzz word..... on 07:00 - Jul 4 with 1532 views | ElephantintheRoom |
It’s a buzzword - probably used because there are so many Americans in English football trying to ‘add value’ to their franchises. It’s gained traction since wages and other contract liabilities became such a millstone.
You see the same thing on the pitch where positions have become lines and harrying has become pressing. | |
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| Amortisation - the new buzz word..... on 07:16 - Jul 4 with 1489 views | Keno |
| Amortisation - the new buzz word..... on 07:00 - Jul 4 by ElephantintheRoom |
It’s a buzzword - probably used because there are so many Americans in English football trying to ‘add value’ to their franchises. It’s gained traction since wages and other contract liabilities became such a millstone.
You see the same thing on the pitch where positions have become lines and harrying has become pressing. |
And you can’t throw a bog roll onto the pitch without someone telling you it’s a health and safety issue and you are causing global warming
What is the world coming to |  |
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| Amortisation - the new buzz word..... on 07:17 - Jul 4 with 1477 views | Swansea_Blue |
| Amortisation - the new buzz word..... on 06:14 - Jul 4 by bobbyramsey |
Yeah, I know. That's what I'm saying, why are people suddenly all talking about it as if they've only just discovered it.
Nobody mentioned amortisation when we were in the leagues below, I expect we've been using it for ever. Is it because the numbers have suddenly got bigger? |
Because many people have only just discovered it, probably. Anyone who followed the writings of Swiss Ramble during the 2010s will be aware of how football transfer fees are accounted, as he used to explain it constantly. |  |
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| Amortisation - the new buzz word..... on 10:07 - Jul 4 with 1271 views | dirtyboy |
It's relevant because of PRS/FFP.
FFP been around 10 years though, but with points deductions and court cases now making the news, the term is simply used/heard more often.
Always been a relevant term as it's part of the financial reporting standards |  | | |
| Amortisation - the new buzz word..... on 10:27 - Jul 4 with 1221 views | EddyJ |
Amortisation is useful to spread the cost of large investments in the company's books. That is relevant for FFP.
I imagine the £70m-£90m we have to spend this window is talking about cash. i.e. the Hutchinson fee takes £20m of that budget, not an amortised £5m. | | | |
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| Amortisation - the new buzz word..... on 10:46 - Jul 4 with 1190 views | Bluish |
Sorry to hijack this thread, but I've just had an email requesting I 'decomplexify' something. So that's 'simplify' then. |  | | |
| Amortisation - the new buzz word..... on 10:46 - Jul 4 with 1185 views | Vic |
| Amortisation - the new buzz word..... on 06:14 - Jul 4 by bobbyramsey |
Yeah, I know. That's what I'm saying, why are people suddenly all talking about it as if they've only just discovered it.
Nobody mentioned amortisation when we were in the leagues below, I expect we've been using it for ever. Is it because the numbers have suddenly got bigger? |
Simples - because most of us have only just discovered it!! |  |
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| Amortisation - the new buzz word..... on 11:09 - Jul 4 with 1115 views | Superblue95 |
| Amortisation - the new buzz word..... on 06:14 - Jul 4 by bobbyramsey |
Yeah, I know. That's what I'm saying, why are people suddenly all talking about it as if they've only just discovered it.
Nobody mentioned amortisation when we were in the leagues below, I expect we've been using it for ever. Is it because the numbers have suddenly got bigger? |
Probably because some people have professions that aren’t accountancy? |  |
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| Amortisation - the new buzz word..... on 11:13 - Jul 4 with 1083 views | Battersea_Blue |
| Amortisation - the new buzz word..... on 06:52 - Jul 4 by TractorWood |
You'd depreciate a computer.
You ammortise intangible assets like goodwill.
Similar concepts just different words. You also generally have to assess intangibles for impairment. [Post edited 4 Jul 2024 7:00]
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Yeah, I was just trying to keep it simple without going into tangible and intangible assets.
Hopefully a lot of people read this thread so understand now. | | | |
| Amortisation - the new buzz word..... on 11:17 - Jul 4 with 1066 views | Ewan_Oozami |
| Amortisation - the new buzz word..... on 07:16 - Jul 4 by Keno |
And you can’t throw a bog roll onto the pitch without someone telling you it’s a health and safety issue and you are causing global warming
What is the world coming to |
And as for those noisy, heavy wooden rattles, forget it!
How many forests were cut down to make those? |  |
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