Quote from: GarTomas on March 09, 2017, 10:54:49 PMQuote from: four fornicholl on March 09, 2017, 09:18:24 PMQuote from: adrenachrome on March 09, 2017, 06:52:58 PMKeith Wyness sat down for an exclusive chat with the Birmingham MailQuoteOn AccountsThe accounts released on Monday were for the year before we took over the club.In layman’s, because unless you’re an accountant this gets quite technical because it’s all around this issue called compartment and it is more of an accounting term that’s used.What is basically means is that once the club was sold at the price Tony bought it for then the value that the club was already at carried over, which was higher than what the club was bought for, meant it had to be adjusted down to a realistic market price.So, what we actually did was, although we had a notion able value of what the club was worth, with what it was actually sold at it created a real crystallised market value.Then you have to cut down the money you’re carrying on the books. So, it’s an accounting treatment more than anything else.Crystal clear, KW.What was that middle bit again Keith?I think a bit like if you own a house on a street; and everyone values there house at 200k on thy street (let's assume they are all the same new build types) then it's valued at 200k on paper.If you sell that house to someonefor 100k; it's hard for the buyer to then start bragging his house is worth 200k given he just paid half of that.So the actual value of the club and its assets could be higher but of a more illiquid nature, since Lerner wanted out for cash that is very liquid in its nature he accepted less of one for more of the other.I'm no accountant mind.Nailed it. You should come to my lodge where we just have a good time and nothing weird happens.
Quote from: four fornicholl on March 09, 2017, 09:18:24 PMQuote from: adrenachrome on March 09, 2017, 06:52:58 PMKeith Wyness sat down for an exclusive chat with the Birmingham MailQuoteOn AccountsThe accounts released on Monday were for the year before we took over the club.In layman’s, because unless you’re an accountant this gets quite technical because it’s all around this issue called compartment and it is more of an accounting term that’s used.What is basically means is that once the club was sold at the price Tony bought it for then the value that the club was already at carried over, which was higher than what the club was bought for, meant it had to be adjusted down to a realistic market price.So, what we actually did was, although we had a notion able value of what the club was worth, with what it was actually sold at it created a real crystallised market value.Then you have to cut down the money you’re carrying on the books. So, it’s an accounting treatment more than anything else.Crystal clear, KW.What was that middle bit again Keith?I think a bit like if you own a house on a street; and everyone values there house at 200k on thy street (let's assume they are all the same new build types) then it's valued at 200k on paper.If you sell that house to someonefor 100k; it's hard for the buyer to then start bragging his house is worth 200k given he just paid half of that.So the actual value of the club and its assets could be higher but of a more illiquid nature, since Lerner wanted out for cash that is very liquid in its nature he accepted less of one for more of the other.I'm no accountant mind.
Quote from: adrenachrome on March 09, 2017, 06:52:58 PMKeith Wyness sat down for an exclusive chat with the Birmingham MailQuoteOn AccountsThe accounts released on Monday were for the year before we took over the club.In layman’s, because unless you’re an accountant this gets quite technical because it’s all around this issue called compartment and it is more of an accounting term that’s used.What is basically means is that once the club was sold at the price Tony bought it for then the value that the club was already at carried over, which was higher than what the club was bought for, meant it had to be adjusted down to a realistic market price.So, what we actually did was, although we had a notion able value of what the club was worth, with what it was actually sold at it created a real crystallised market value.Then you have to cut down the money you’re carrying on the books. So, it’s an accounting treatment more than anything else.Crystal clear, KW.What was that middle bit again Keith?
Keith Wyness sat down for an exclusive chat with the Birmingham MailQuoteOn AccountsThe accounts released on Monday were for the year before we took over the club.In layman’s, because unless you’re an accountant this gets quite technical because it’s all around this issue called compartment and it is more of an accounting term that’s used.What is basically means is that once the club was sold at the price Tony bought it for then the value that the club was already at carried over, which was higher than what the club was bought for, meant it had to be adjusted down to a realistic market price.So, what we actually did was, although we had a notion able value of what the club was worth, with what it was actually sold at it created a real crystallised market value.Then you have to cut down the money you’re carrying on the books. So, it’s an accounting treatment more than anything else.Crystal clear, KW.
On AccountsThe accounts released on Monday were for the year before we took over the club.In layman’s, because unless you’re an accountant this gets quite technical because it’s all around this issue called compartment and it is more of an accounting term that’s used.What is basically means is that once the club was sold at the price Tony bought it for then the value that the club was already at carried over, which was higher than what the club was bought for, meant it had to be adjusted down to a realistic market price.So, what we actually did was, although we had a notion able value of what the club was worth, with what it was actually sold at it created a real crystallised market value.Then you have to cut down the money you’re carrying on the books. So, it’s an accounting treatment more than anything else.
I will preface this by stating that I know nothing of economics...but isn't it the other way round? If a house is valued at £200 000 and you over pay by £100 000 the house is still only worth £200 000 on the open market? if for the same house you pay under pay £100 000 and then sell it it will still be worth £200 000? Given that you look at the market, prices for similar sized and priced goods, and location then just under paying doesn't mean that you bring the whole market down and the commodity 9house, Villa) suddenly loses it's value. There are many reasons for a cheap sale - to get rid being one - so I'm not sure that would affect the long time value.
Quote from: peter w on April 07, 2017, 06:28:18 AMI will preface this by stating that I know nothing of economics...but isn't it the other way round? If a house is valued at £200 000 and you over pay by £100 000 the house is still only worth £200 000 on the open market? if for the same house you pay under pay £100 000 and then sell it it will still be worth £200 000? Given that you look at the market, prices for similar sized and priced goods, and location then just under paying doesn't mean that you bring the whole market down and the commodity 9house, Villa) suddenly loses it's value. There are many reasons for a cheap sale - to get rid being one - so I'm not sure that would affect the long time value.What something is worth is an art, not a science. But accounting tries to put some science to it.That science involves defining a number of acceptable ways of valuing something, with a recent sales price being one of the best indicators of what something is worth. After all, in a purely financial sense, what something is worth is essentially what someone else is willing to pay for it. There are exceptions to this (distressed sales like you say) but none of these apply in Randy's case. He sold because he wanted to, not because he was forced to.And to pick up on your final point, the accounts make no attempt to show a "long term value". The balance sheet is a view of the position of the group at a point in time, and accounting standards demand that for those assets we impaired they must be shown at the lower of cost or net realisable value. So long term value doesn't really come in to it.
A quick glance, and we’ve made a profit of £1.7m, which is pretty decent, though it says we lost £197m last year, which is a bit of a shock as I thought it was “only” £80m ish. No wonder they’re shitting themselves over FFP.
Balance sheet position improved though due to a £57m capital contribution by the parent company[/li][/list]
Quote from: Ad@m on February 15, 2018, 12:00:42 PMBalance sheet position improved though due to a £57m capital contribution by the parent company[/li][/list]Presumably that's a pretty positive thing isn't it? Suggests that fears that everything is being funded by loading up liabilities on the club aren't the case.Or not?
The loan notes are £49m. I think it was accruals that are £15m.