It does mean that. It's a contract that stands only when one party pays the entire fee (if we're talking about straight transfer). They do not consider it as a transfer until money gets in our bank.
It actually doesn't have to do anything with accounting but law, and business that involves contracts.
You're wrong this time, Dule.
Trust me, I've seen enough (work- related) cases when it comes to this. And it has everything to do with (creative) accounting.
"Law", be it economic or sporting, could get involved in a later stadium though, in case of some dispute.
@ Red
Wolfsburg agreed to pay the entire fee at once. Meaning we sent them 1 invoice (for lack of a better word). When the invoice is made out, most (all afaik) big companies consider the sale to be finalized: you no longer have his contract on your books. On one side the entry is made (negative if you will) of one less player, on the other side (a positive) entry is made for the agreed amount. This does not mean you have received the cash.
The actual credit collection has very little to do with it. It's obviously very important, but has little to do with strict accounting.
Furthermore: we know absolutely nothing about the agreed payment terms (has nothing to do with installments). It could be up front, it could be within 30 days, it could be within 120 days, it could be anything. Regardless, you'll still book it as one entry, in the current fiscal year.
Unlike when you agree to pay in three installments: you'll book a part in this fiscal year, a part in the next, and so on.
Simple example: my company sells & invoices a certain amount each month. Let's say it's 1 million€ in January 2011. This entire million will be booked as sales / revenue in January 2011. But this does not mean that we received 1 million€ on our bank account. Realistically speaking, it would mean about 400.000 - 500.000€.
The rest of those January sales will probably end up on our account in Feb, March, April, ..., but they will have been booked (the sales) in January.
Hope this makes some sense, it's difficult to give a better explanation, especially in a foreign language.
Clearly, if Wolfsburg does not honor their side of the agreement, that's when the law could come into this, but we don't know that.