12-04-2004, 03:45 PM
While looking at the topic and the link of the footbal club's accounts, i got confused.
In the fin.statements of the club, there is no selling or purchasing of players, but the player's registerations, that is why the club has shown all the player's registerations as Intangible assets.
Therefore in my opinion, the human is the asset for the business due to his skills which he possess.
Why should we pick the example of any other country, just pick any financial statement of any company incorporated in pakistan. (Preferably those financial statements where u can see 'Operating lease')
Now look at the head 'Salaries and other benefits', in my opinion the payments in this head can be considered as "Lease Rental" for the use of assets. But the difference is that we cannot determine the total value and useful life of 'Human', thats why we cannot have the purchase option at the end of lease period.
SMR
In the fin.statements of the club, there is no selling or purchasing of players, but the player's registerations, that is why the club has shown all the player's registerations as Intangible assets.
Therefore in my opinion, the human is the asset for the business due to his skills which he possess.
Why should we pick the example of any other country, just pick any financial statement of any company incorporated in pakistan. (Preferably those financial statements where u can see 'Operating lease')
Now look at the head 'Salaries and other benefits', in my opinion the payments in this head can be considered as "Lease Rental" for the use of assets. But the difference is that we cannot determine the total value and useful life of 'Human', thats why we cannot have the purchase option at the end of lease period.
SMR
