StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

Financial Statements in Arsenal Plc - Case Study Example

Comments (0) Cite this document
Summary
This work called "Financial Statements in Arsenal Plc" describes the accounting policy of Arsenal holding from a particular angle that relates to the capitalization of the cost of players which are amortized but do not include the current value of the market players. The author outlines the aspects of organizational activities in sport. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Financial Statements in Arsenal Plc
Read TextPreview

Extract of sample "Financial Statements in Arsenal Plc"

Download file to see previous pages As the annual report states that the company does not include any value for their acquired or “homegrown (internally developed)” players. Since the purpose of financial reporting is to provide a fair view of the organization, therefore we will analyze how much extent this statement accurately depicts the true picture of the organization. Before making an analysis, we will have a historical review of how these accounting policies have emerged over a period of time.
The clubs have historically been an integral element of the business of football. The regulations introduced by the English Football Association in 1885 required that all players be registered annually with a club (Morrow 1997). While on the other hand, accounting of professional sports clubs has been a very complex topic and especially in the area of human resource accounting due to the striking differences between professional sportspeople and other employees.
In the field of Accounting, the traditional practice for football players was to exclude the valuation of players whether they were developed internally or bought through the transfer system (Morrow, 1995). However, this trend has changed during recent years where a growing number of clubs have noticed that such a practice did not provide a true picture of the financial affairs of the organization therefore now they are incorporating football players as assets. A publication authorized by Wagner (2007) suggested that human resources are one of the most vital capitals (people and teams) and investors often look for these factors in the valuation of the company along with the structural capital which consists of processes, information systems and relational capital which is associated with customers, suppliers, and other stakeholders. Accounting policies with respect to sports players significantly changed during the mid of ’90s. The mechanism of the transfer system of football players brought a significant influence on the valuation of the companies. The transfer system which pertains to player trading is done by clubs to recoup their investment in training and development of a player’s skill during the contract period. Generally, there are two kinds of transfer mechanisms that take place between the clubs: Transfer of players under contract and transfer of players who are outside the scope of a contract who are also called free agents. Until 1995, if the club aimed to extend the contract of the players and if the player didn’t want to extend the contract and wanted to join another club after the contract period; then the holding club was entitled to receive a transfer fee from the new club to whom the player was joining. In a litigation case of ‘Bosman’, the court ruled that players outside contracts are given the freedom to move freely from one team to another and it was declared void to charge any transfer fees among the clubs after the contract has expired. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Financial Statements in Arsenal Plc Case Study Example | Topics and Well Written Essays - 1500 words, n.d.)
Financial Statements in Arsenal Plc Case Study Example | Topics and Well Written Essays - 1500 words. https://studentshare.org/finance-accounting/1747562-in-arsenal-plcs-financial-statements-200910
(Financial Statements in Arsenal Plc Case Study Example | Topics and Well Written Essays - 1500 Words)
Financial Statements in Arsenal Plc Case Study Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/finance-accounting/1747562-in-arsenal-plcs-financial-statements-200910.
“Financial Statements in Arsenal Plc Case Study Example | Topics and Well Written Essays - 1500 Words”. https://studentshare.org/finance-accounting/1747562-in-arsenal-plcs-financial-statements-200910.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial Statements in Arsenal Plc

Financial statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... Living is a manufacturing company that produces home furniture. The company’ target market is first time buyers between the ages of 21 to 54. The company currently generates $250 million in revenues. The firm is looking to expand its operations by introducing new product lines. Furniture is a product that has a huge marketplace due to the fact that all homes worldwide need furniture. A hot trend in the industry is the offering of green furniture which is furniture that is produced from renewable sources. A company that has exploited this trend in Europe and currently in the process of penetrating the US marketplace is IKEA. As the VP of finance of Superior it is my duty ...
3 Pages(750 words)Essay

Financial Statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... ACCT CASE 2: Financial ments October 14, Part I. • Generally Accepted Accounting Principles (US GAAP); Generally Accepted Accounting Principles are basically rules and concepts. The principles ensure that companies prepare their financial statements by complying with relevance, reliability, comparability and other related generally accepted accounting principles. The principles increase communication of financial data from the makers to the users of the financial statements within the United States (Wild, Shaw, Chiappetta, 2011). • International Accounting Standards (IFRS); The International Accounting Standards (IFRS) present globally preferred accounting principles....
4 Pages(1000 words)Essay

Financial statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... Financial ments Grade (27th, April. The relationships between the income ment, balance sheet, and statement of cash Financial statements refer to the records that show the financial transactions of any given organization, dependent on the direction in which the transaction goes (USEC, 2007). There are those transactions that are initiated by the organization towards other stakeholders to that organization, while others are initiated by the stakeholders’ towards the organization. Either way, the transactions entails either bringing some money to the organization, or taking away some money from the organization, for the purpose of paying up some expenditure it has...
4 Pages(1000 words)Research Paper

Financial Statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... ments: Fact or Fiction Financial ments are one of the primary ways that a company communicates its financial health to the public and its stakeholders. These statements may be used by auditors, tax revenue institutions, internal analysis, or evaluated for investment possibilities. The critical nature of the information demands that it be accurate and truthful. They are formatted and calculated using Generally Accepted Accounting Practices (GAAP). They must adhere to standards set by a government controlling body such as the Financial Reporting Council (FRC), the Accounting Standards Board (ASB), and the International Accounting Standards Board (IASB). Yet, as much as...
4 Pages(1000 words)Essay

Financial Statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... Essential financial information on the management of the enterprise The memo to the board will inform them that basic financial information will be submitted through the four financial statements that include income statement, balance sheet, statement of stockholders’ equity, and cash flow statement. The financial statements will provide the overall performance of the company, and where financial ratios can be derived and computed to analyze company performance. The introduction of the new spark plug manufacturing process in the Unites States, which is said to be very successful, will be confirmed and validated by the financial statements to be presented. While the finan...
8 Pages(2000 words)Essay

Financial Statements

...Financial Statements in Arsenal Plc... Google Source: http finance.yahoo.com/q/is?s=GOOG+Income ment&annual I. Gross profit margin Formula: gross profit total profit = gross profit margin expressed in percentage Year 2010 (number in thousands) Gross profit: 18,904,000 Total Profit: 29,321,000 18,904,000/29,321,000=.64 Gross profit margin : 64% Year 2011 Gross profit: 24,717,000 Total profit: 37,905,000 24,717,000/37,905,000 = .65 Gross profit margin: 65% Year 2012 Gross profit: 29,541,000  Total Profit: 50,175,000   29,541,000 / 50,175,000  = .588 Gross profit margin = 58% II. Operating income margin Formula: operating income/revenue Year 2010 (number in thousands) Operating income: 10,381,000   Revenue: 29,321,000  10,381,000  / 29,321,000 =...
2 Pages(500 words)Essay

Tesco PLC and Ocado PLC Annual Report and Financial Statements

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... Summary The markets are now finally on the road to recovery after the recession that has severely damaged the financial s. Now we have to come up with innovative and diverse ideas which have the capability to bring us higher rate of return and improve our market share. The recent growth in retail market has succeeded in gaining attention of diverse investment firms such as Mighty Investments which has decided to invest a £ 100 millions in the industry. We have filtered two prospective companies, namely Tesco PLC and Ocado PLC. Tesco being an icon of the traditional retailing, where you have to physically go to the mart and purchase the products of need. A century has...
6 Pages(1500 words)Assignment

Arsenal PLC: Control an Asset

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... PLC Arsenal is a premier football club in world’s prominent Leagues and enjoys a strong reputation among the soccer fans. Arsenal Group is a commercial organization which derives it major source of revenues from home fixtures, commercialization, broad casting and real estate development (Arsenal Holdings Plc, 2010). As an organization, it aims to prudently invest in the team, supporting staff and training facilities. At the same time its mega project of Emirates Stadium is evolving and they are ploughing money into the stadium so that it stays best in class and operates as a brand identity for Arsenal. Outstanding performance in the property business has led achieve Ar...
6 Pages(1500 words)Coursework

Arsenal PLC: Financial Statements 2009/10

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... PLC: Financial Statements 2009-2010 “The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to wide [sic] range of users in making economic decisions”. This is a fair assessment of the requirement for financial statements: They need to accurately represent the real assets of a company, firm or institution, as well as the real costs. Arsenal Holding PLC's 2009-2010 financial statement is a good place to analyze what this actually means. The most important matter is the treatment of players as assets in the financial statement of Arsenal. As a soccer club, A...
7 Pages(1750 words)Coursework

Interpretation of Financial Statements: Next Plc and Ted Baker Plc

...Financial Statements in Arsenal Plc... Financial Statements in Arsenal Plc... of Financial ments Table of Contents Interpretation of Financial ments Table of Contents 2 Introduction 3 Financial analysis of Next Plc (NXT) & Ted Baker Plc (TED) 5 Recommendation 9 Reference 10 Bibliography 12 Introduction The financial statements of a company provide important financial information about the business operations. With the help of this information one can compute financial ratios relating to liquidity, profitability, gearing and efficiency that help in assessing the financial performance of the company.   Next Plc   Ted Baker Plc   2010 (£m) 2009(£m)   2010 (£’000) 2009 (£’000) PROFITABILITY  (£m)       Gross Profit 996.9 908.5 ...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Financial Statements in Arsenal Plc for FREE!

Contact Us