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Manchester United is one of the world's largest and most successful football clubs. Given its size, Manchester United is subject to accounting regulation and publishes
Manchester United is one of the world's largest and most successful football clubs. Given its size, Manchester United is subject to accounting regulation and publishes financial statements. As the club is a European firm listed on the New York Stock Exchange, it elected to use IFRS for its statements. Below is a snapshot of its balance sheet. Consolidated balance sheet A Some years ago, the Belgian striker Romelo Lukaku was bought by Manchester United for a total sum of Where would you expect to find the striker on the balance sheet? Apply the IFRS definitions of an asset or liability. B How should football players be depreciated or amortized? C Discuss what might happen in the event of a longterm injury incurred by Lukaku. Conversely, given his performance at the prior World Championships, discuss how this may affect the carrying amount on the balance sheet. D Discuss the main assets, liabilities, revenues, and costs of a football club. Where would you expect most earnings management?
Manchester United is one of the world's largest and most successful football clubs. Given its
size, Manchester United is subject to accounting regulation and publishes financial statements.
As the club is a European firm listed on the New York Stock Exchange, it elected to use IFRS
for its statements. Below is a snapshot of its balance sheet.
Consolidated balance sheet
A Some years ago, the Belgian striker Romelo Lukaku was bought by Manchester United
for a total sum of Where would you expect to find the striker on the
balance sheet? Apply the IFRS definitions of an asset or liability.
B How should football players be depreciated or amortized?
C Discuss what might happen in the event of a longterm injury incurred by Lukaku.
Conversely, given his performance at the prior World Championships, discuss how this
may affect the carrying amount on the balance sheet.
D Discuss the main assets, liabilities, revenues, and costs of a football club. Where would
you expect most earnings management?
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