| Good to see Italian football has cleaned up its act on 14:45 - Jan 26 with 734 views | bluelagos |
Clearly some poor management - but the thing I can't get my head around is the charge of over inflating the players worth.
That is ultimately a balance sheet issue - you may take the revaluation to your p&l (and thus overstate you profit) but that just means your profit is later reduced by exactly the same amount as/when a player is sold and/or his contract ends.
So what would be the motive for (effectively) bringing profit forward a few years? It would mean you pay more tax now (which is not a good thing) - can see why you would do it if you were selling the club (and thus get a higher valuation) but otherwise am confused what the club(s) were doing it for...
Anyone ? |  |
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| Good to see Italian football has cleaned up its act on 14:48 - Jan 26 with 721 views | Zx1988 |
| Good to see Italian football has cleaned up its act on 14:45 - Jan 26 by bluelagos |
Clearly some poor management - but the thing I can't get my head around is the charge of over inflating the players worth.
That is ultimately a balance sheet issue - you may take the revaluation to your p&l (and thus overstate you profit) but that just means your profit is later reduced by exactly the same amount as/when a player is sold and/or his contract ends.
So what would be the motive for (effectively) bringing profit forward a few years? It would mean you pay more tax now (which is not a good thing) - can see why you would do it if you were selling the club (and thus get a higher valuation) but otherwise am confused what the club(s) were doing it for...
Anyone ? |
Could it be related to share prices etc.,?
Over-inflating the value of an asset would, I imagine, have a knock-on effect of inflating the value of the organisation? |  |
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| Good to see Italian football has cleaned up its act on 14:50 - Jan 26 with 718 views | Keno |
| Good to see Italian football has cleaned up its act on 14:45 - Jan 26 by bluelagos |
Clearly some poor management - but the thing I can't get my head around is the charge of over inflating the players worth.
That is ultimately a balance sheet issue - you may take the revaluation to your p&l (and thus overstate you profit) but that just means your profit is later reduced by exactly the same amount as/when a player is sold and/or his contract ends.
So what would be the motive for (effectively) bringing profit forward a few years? It would mean you pay more tax now (which is not a good thing) - can see why you would do it if you were selling the club (and thus get a higher valuation) but otherwise am confused what the club(s) were doing it for...
Anyone ? |
It may be something to with the Italian version of capital adequacy, in that the club has to have a certain value so you inflate the value of your asset to reach that value |  |
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| Good to see Italian football has cleaned up its act on 14:56 - Jan 26 with 694 views | bluelagos |
| Good to see Italian football has cleaned up its act on 14:50 - Jan 26 by Keno |
It may be something to with the Italian version of capital adequacy, in that the club has to have a certain value so you inflate the value of your asset to reach that value |
Can see if they have fair play rules - why you might do it. Over state your profit and stay within the rules / avoid penalties.
That assumes you could take the revaluation to your P/L - am not up on Italian accounting standards - and not that interested to go find out tbh.
Edit - As efforts to get a 10 pager this one has failed miserably Keno. Can't imagine why :-) [Post edited 26 Jan 2023 14:57]
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| Good to see Italian football has cleaned up its act on 17:49 - Jan 26 with 594 views | CraigIT |
I love Serie A. Massive AC Milan fan. | | | |
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