(a) ‘Human assets are incapable of being valued.’ Discuss.

(b) Football clubs have followed various policies in the way in which they include players within their accounts. For example, some clubs capitalise players, as shown by a 1992 Touche Ross survey:

Discuss arguments for and against capitalising players as assets. Explain the effect on the profit and loss account if players are not capitalised.

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Club Value Basis Which players m Tottenham Hotspur 9.8 Cost Those purchased Sheffield United 8.7 Manager's valuation Whole squad Portsmouth 7.0 Directors' valuation Whole squad Derby County 6.5 Cost Those purchased Other clubs disclose squad value in notes to the accounts or in the directors' report: Manchester United Charlton Athletic Millwall 24.0 Independent valuation 4.1 Directors' valuation 11.0 Manager's valuation