Key accounting policies

Consider to the following companies:

Juventus F.C. S.p.A is an Italian publicly listed football club. The club's primary sources of revenue are:

a. Seasonal and single ticket sales.

b. Television, radio and media rights.

c. Sponsorship and advertising contracts.

d. The disposal of players' regitration rights.

Players' registration rights are recognized on the balance sheet at cost and amortized over the players' contract terms. The club leases its stadium Studio Delle Alpi under an operating lease arrangement; however, it has started the construction of a new stadium,which isconfinanced by an outside sponsor in exchange for exclusive naming rights.

Spyker Cars N. V. is a Netherlands-based publicly listed designer and manufacturer of exclusive sports cars. In 2008, the company's revenue amounted to 7,852,000 of which 5,772,000 was related to car sales and 1,752,000 was income from GT Racing activities. In that year, Spyker produced 30 new cars and sold 37 cars. It held 42 cars in stock at the end of the year. Further, the company spentclose to 6 million on development and 378,000 on research. Spyker has been lose-making since its initial public offering in 2004. At the end of 2008, the car manufacturer had 76 in tax-deductible carry forward losses.

J Sainsbury plc is a UK-based publicly listed retailer that operates 502 supermarkets and 290 convenience stores and has an estimated 17% marked share in the UK. During 2004-2008, the company's operating profit margin steadily increased from 1.5 to 3.7%. At the end of March 2008 the net book value of Sainsbury's land and buildings was 5.9 billion. A part of company's supermarket properties was pledged as a security for long-term borrowings. In 2008 Sainsbury's had 151,000 employees (98,000 full-time equivalents); many of them participate in one of the retailer's defined-benefit pension plans.

1. Identify the key accounting policies for these companies.

2. What are these companyies' primary areas of accounting flexibility? (focus on key accounting policies)