Why

[Dour]

I believe the deferred wages were paid. I don't know what you mean about creative accounting, the accounts were subject to an outside audit, plus I believe Teacher's insisted another firm of accountants assist with the general accounts production. The £6.4 million is not a sum that fell due on 1st June 2006, much of it is provisions that would be met in the day to day running of the club. The amount, to me ( a boring accountant ) would imply the accounts were prepared on a conservative and prudent basis. Of course I do not have access to the underlying books of account, but it is a feeling I get born out of doing this job for 28 ( count 'em ) years.:icon_redf

I'd agree. Having done some years investigating accounts, there's nothing at Leicester that screams warnings about creative accounting, or entries that you'd imediately demand to know a lot more about. (Apart from the Teacher's deal, obviously.)

Unlike, say, the loan to an associate company listed as an asset in the last year of Mandaric's charge of Pompey - at the same time as MM was pulling his loans out...

 

[1966]

I had a go at trying to explain , but I think Harry has got hold of the wrong end of the stick re a figure in the last accounts of £6.4 million relating to accrued expenses and monies received in advance.

If I remember rightly (allthough I'm probably completely wrong) the players wages for the duration of their contracts are counted as debts, which I presume will add up to a very tidy sum indeed.

 

[Real Sharapova]

If I remember rightly (allthough I'm probably completely wrong) the players wages for the duration of their contracts are counted as debts, which I presume will add up to a very tidy sum indeed.

No that's not the case. What you might be thinking of is that transfer fees are written off as an expense over the length of the players' contracts.

 

[1966]

No that's not the case. What you might be thinking of is that transfer fees are written off as an expense over the length of the players' contracts.

I thought that as players had to be paid come what may, for a football club to continue playing, then future salaries therefore counted as debts.

You can't after all make footballers redundant and carry on playing, as a normal company would do, without settling their complete contract.

 

[Real Sharapova]

I thought that as players had to be paid come what may, for a football club to continue playing, then future salaries therefore counted as debts.

You can't after all make footballers redundant and carry on playing, as a normal company would do, without settling their complete contract.

Yes, but you would only make a provision if you had good grounds to believe you were going to have to pay their contracts up early - as LCFC is ( and was ) a going concern, there would be no reason to make such a provision.

 

[1966]

Yes, but you would only make a provision if you had good grounds to believe you were going to have to pay their contracts up early - as LCFC is ( and was ) a going concern, there would be no reason to make such a provision.

Thankyou, informative as always.

 

[Real Sharapova]

Thankyou, informative as always.

A pleasure.