Let me try. If you bought a 31yo-Ibra for 21m in a 3 years contract and you know for sure than noone would buy him at 34, you need to amortizate 7m each year (21 ÷ 3). If you do that in your books Ibra would have a value of 0.
Jun 13: 21m
Jun 14: (21-7=) 14m
Jun 15: (14-7=) 7m
Jun 16: (7-7=) 0m
- - - Updated - - -
If his salary is 16m per year. He really cost 16m + 7m (amlrtization) would be 23m each year
Jun 13: 21m
Jun 14: (21-7=) 14m
Jun 15: (14-7=) 7m
Jun 16: (7-7=) 0m
- - - Updated - - -
If his salary is 16m per year. He really cost 16m + 7m (amlrtization) would be 23m each year
Buy on AliExpress.com