The Financial Situation (5 Viewers)

Feb 10, 2007
4,020
Hello, analysts.

I'm reading the annual report and the biggest source of revenue, apparently, is Players' registration rights. What on earth is this??? What exactly is the revenue stream from having a bunch of signed contracts? Could this be revenue from sale of shirts?
EDIT: Found it in the notes. It's capital gains. Amounts to 172m for 19/20.
It's capital gains from asset disposal, shouldn't be classified as revenue (in the future atleast). Deloitte Football Money League always excludes it when they do the club-wise revenue comparison

IFRIC quoted paragraph 113 of IAS 38, which states: ‘The gain or loss arising from the derecognition of an intangible asset shall be determined as the difference between the net disposal proceeds if any and the carrying amount of the asset. It shall be recognised in profit or loss when the asset is derecognised… Gains shall not be classified as revenue.’

IFRIC decided that as the payment had been made in respect of extinguishing the registration right, it represented compensation for disposing of an intangible asset. Therefore neither the proceeds nor the gain on disposal could be recognised within revenue by applying IFRS 15.
https://cdn.ifrs.org/-/media/projec...ts/ias38-player-transfer-payments-june-20.pdf
 
Last edited:

Users Who Are Viewing This Thread (Users: 0, Guests: 4)