QPR fiddling the books?

[mac04]

According to accounting standards, writing off a loan can be credited to the P&L statement to increase profit. QPR must have done this, making the headline profit look bigger.

But with FFP the headline profit in the accounts has to be adjusted for various "non trading" items such investing in the stadium or training facilities. I don't see how writing off a loan should be able to help FFP losses. It should be one of those items that doesn't count for FFP.

 

[Hotchilidog]

I wonder if Champions League clubs will go down the same path, or if it's more water tight.

I was wondering that. There must be a few chairmen who are now feeling slightly more perky on hearing this news.

 

[KZNSeagull]

This is the death knell for FFP surely? All the money money Fernandes has written was spent on overpaid players, not infrastructure. This renders the entire process utterly pointless.

Whilst we are in debt to Bloom, the bulk of his money as all gone into the stadium and the training facility leaving us with very little wriggle room as regards transfer fees. So it now appears that benevolent owners are indeed free to fritter away away as much of their own cash as long as the club do not pay it back. Madness!

Only if their accounts are ratified by the Football League. This is the moment where we find out whether they have the balls to fight back. I have no doubt that TB/PB will have something to say if they cave in.

 

[Hotchilidog]

Only if their accounts are ratified by the Football League. This is the moment where we find out whether they have the balls to fight back. I have no doubt that TB/PB will have something to say if they cave in.

We await with baited breath......

 

[KZNSeagull]

We await with baited breath......

I would imagine that any deal done with QPR by the Football League would actually have to be approved by the members, if it goes against the existing FFP rules. The FL rules are set by the members and those in charge of keeping the rules are voted in by the members. So if this is a deal done by the FL but it has not been approved by the members, there will be all sorts of trouble.

 

[Goldstone1976]

Without wanting to turn this into a double entry wankfest (I do have the film of the same name BTW), I would Cr Reserves, the write off has nothing to do with trading.

Yep, maybe you could persuade the auditors to let you take it straight to reserves.

 

[El Presidente]

I've ordered the QPR accounts, as I'm doing some research work on the Championship, so will await their publication with morbid curiousity.

In the meantime, here's a picture of a cute kitten

 

[Hampster Gull]

I've ordered the QPR accounts, as I'm doing some research work on the Championship, so will await their publication with morbid curiousity.

In the meantime, here's a picture of a cute kitten

Is that the FA investigation team?

 

[tinycowboy]

Without wanting to turn this into a double entry wankfest (I do have the film of the same name BTW), I would Cr Reserves, the write off has nothing to do with trading.

Whilst I disagree with your first clause, I agree with your conclusion - where a company receives consideration from a shareholder without a contractual obligation to repay it, this is an increase in equity. It is as clear as day to a celebrated accountant such as myself, even if I misuse my reflexive pronouns.

 

[Mr Bridger]

I've ordered the QPR accounts, as I'm doing some research work on the Championship, so will await their publication with morbid curiousity.

In the meantime, here's a picture of a cute kitten

would have preferred a fully grown hairy pussy

 

[PILTDOWN MAN]

The Football League basically saying no comment to today's release of accounts, other than to say they had already received the accounts in relation to FFP. Hopefully they have the balls to carry through the penalty.

 

[Hampster Gull]

The Football League basically saying no comment to today's release of accounts, other than to say they had already received the accounts in relation to FFP. Hopefully they have the balls to carry through the penalty.

Did you not see the earlier pictures of the pussy cat?

 

[maltaseagull]

Is that the FA investigation team?

Might as well be!