How healthy are the club's finances????

[ferrarilover]

As amusing as this all is, no one has yet demonstrated, using maths rather than jargon, why my sums are wrong.

Jonny, shouldn't you be 'helping officers with their enquiries' regarding Operation Yewtree?

Matt.

[cambgull]

As amusing as this all is, no one has yet demonstrated, using maths rather than jargon, why my sums are wrong.

Jonny, shouldn't you be 'helping officers with their enquiries' regarding Operation Yewtree?

Matt.

Why would they want to waste their time making a massive post when you'll still think you're right at the end of it anyway?

[Scott Brehaut]

Why would they want to waste their time making a massive post when you'll still think you're right at the end of it anyway?

That cheered my Monday right up!!

[SteveDeckchair]

Matt

650k spend on a new stand, which will last 50 years. Each year, 650 / 50 or 13k will hit your profits.

still think our hundred thousand loss is down to our capital investment?

[exilegull]

As amusing as this all is, no one has yet demonstrated, using maths rather than jargon, why my sums are wrong.

It's because accountancy is a bit like being in the magic circle - information is not shared with outsiders as it could destroy the illusion.

Stevedeckchair has given a good example though.

[ferrarilover]

Matt

650k spend on a new stand, which will last 50 years. Each year, 650 / 50 or 13k will hit your profits.

still think our hundred thousand loss is down to our capital investment?

But we're not paying it off over 50 years, we've paid it in one go (in my example, if not in reality).

Considering my example is oh-so-stupid, you're all making a right meal of offering an alternative.

I've not once suggested I'm right, I'm sure I'm not, all I ask is that someone explains (using maths, not bullspit terms) what the situation is.

Matt.

[ferrarilover]

matt

what are the one off costs you talk about?

more then happy to you an accountancy lession but you might be better off using google before you post on here to understand how things work.

cash is not the same as profit. players can be sold in jan and the cash isnt handed over untill they complete a certain number of games which could be months later by which time cash has been paid out and the club cant pay its bills and goes in to administration even though itis still owed money by another club.

its a crude example of acconting but keeping it simple would help you to start with

If you're going to attempt to assume the intellectual high ground, perhaps work on your English.

Matt.

[exilegull]

Matt,

Stevedeckchair doesn't ever say it is paid off over 50 years - he says it will last 50 years.

Assume at the end of 2010/11 the club has £650k in cash. In the year 2011/12 the club uses the cash to build the bench and it is finished at the end of that financial year. So the club has spent £650k, however the balance sheet shows at the end of 2010/11 an asset in the form of cash of 650k and at the end of 2011/12 an asset in the form of a new stand worth £650k. As profit and loss is a reflection of changes in the balance sheet, there is no profit or loss - again despite spending £650k in cash.

Now the stand is due to last 50 years - so at the end of 50 years it will be worth zero. Each year 1/50th of the value will be reduced from the asset on the balance sheet. So at the end of 2012/13 the asset will be worth £637k and the club will record a loss of £13k - despite no cash actually having been spent.

Does that help?

[SuperNickyWroe]

Matt,

Stevedeckchair doesn't ever say it is paid off over 50 years - he says it will last 50 years.

Assume at the end of 2010/11 the club has £650k in cash. In the year 2011/12 the club uses the cash to build the bench and it is finished at the end of that financial year. So the club has spent £650k, however the balance sheet shows at the end of 2010/11 an asset in the form of cash of 650k and at the end of 2011/12 an asset in the form of a new stand worth £650k. As profit and loss is a reflection of changes in the balance sheet, there is no profit or loss - again despite spending £650k in cash.

Now the stand is due to last 50 years - so at the end of 50 years it will be worth zero. Each year 1/50th of the value will be reduced from the asset on the balance sheet. So at the end of 2012/13 the asset will be worth £637k and the club will record a loss of £13k - despite no cash actually having been spent.

Does that help?

for matt, probably not..........

[SteveDeckchair]

But we're not paying it off over 50 years, we've paid it in one go (in my example, if not in reality).

Considering my example is oh-so-stupid, you're all making a right meal of offering an alternative.

I've not once suggested I'm right, I'm sure I'm not, all I ask is that someone explains (using maths, not bullspit terms) what the situation is.

Matt.

Your quote here shows why you have no wish to actually understand what the issue is. I must therefore assume you are on a wind up.

My explanation tells you why things aren't what they seem. Let me try another that even you could comprehend.

Would you expect anyone to be able to give a detailed analysis of the entire football season for league two, based on the final table position? Think about everything that goes on in every single game and the way things evolve through the year for every single team, player, etc etc.

The final league table, although very useful to tell you how it all ended and who went up or down, is useless if you wanted to know an individual result our a team's form at any particular point or any other nugget of information.

Even you must get that Matt.

[Trojan 67]

It's because accountancy is a bit like being in the magic circle - information is not shared with outsiders as it could destroy the illusion.

[Dave]

If we had an award for most entertaining thread of the year this would win it hands down.

Matt, my tip of the day. I am both part-time employed and part-time self employed, when I need advice on my tax return I talk to an accountant, when my van is not running right I talk to a mechanic, if I need legal advice I would speak to some one like yourself, hope that helps...

[cambgull]

If we had an award for most entertaining thread of the year this would win it hands down.

Matt, my tip of the day. I am both part-time employed and part-time self employed, when I need advice on my tax return I talk to an accountant, when my van is not running right I talk to a mechanic, if I need legal advice I would speak to some one like yourself, hope that helps...

Loving the subtitles on that one!

[wodger of awabia]

If we had an award for most entertaining thread of the year this would win it hands down.

Matt, my tip of the day. I am both part-time employed and part-time self employed, when I need advice on my tax return I talk to an accountant, when my van is not running right I talk to a mechanic, if I need legal advice I would speak to some one like yourself, hope that helps...

I.M.O. this accountancy thread is only half as interesting, informative & entertaining as the Exeter City Forum accountancy thread! ( "the word on Well Street", "Tisdale taking 200k of the budget" )
It is also only about a quarter of the length!, "do buck up !"
There is also a thread on Rene Howe.......

[Southampton Gull]

I.M.O. this accountancy thread is only half as interesting, informative & entertaining as the Exeter City Forum accountancy thread! ( "the word on Well Street", "Tisdale taking 200k of the budget" )
It is also only about a quarter of the length!, "do buck up !"
There is also a thread on Rene Howe.......

Am Exeter forum? Well I never !!