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Good post Abu, Pretty much spot on everything you said. As you have mentioned accounting figures are prepared on the basis of matching and accruals principle because the receipt of cash differs from the normal business operating cycle of the firm. And many of the book value of companies due...

I am almost certain they have done that as well. When players gets transfered to certain teams, the cost of their transfer is not written off immediately (this probably prohibited by convention because teams will use transfer to dodge tax payments). Suppose that Thuram moved to Juve for 24m...

Annual income statement is pretty meaningless because these figures depends much on conventions. Without going into details, to explain in simple terms, the accounting problems occur because the date you record the transaction and the actual cash payment differ. And to record and value...