Accounts 19-20 | Page 3 | Vital Football

Accounts 19-20

The disposal of assets figure of (1,395,742) refers to the original costs that were intially capitalised ie. transfer fees,signing on fees ect. This asset value will be eliminated when the player leaves-this will include Michael Bostwick,Tom Pett,Neil Eardly,Frecklington,Josh Vickers and so on.It will also potentially include signing on fees that relate to Danny and Nicky Cowley plus other departed Management staff. The £1 million compensation figure for Cowley is not included in this amount.

The total transfer fees we received for players was £505,500-Toffolo would be the biggest part of that. The profit on transfers is £496,974 and is made up as follows :
£505,500 receipts less cost Disposals £1,395,742 plus depreciation written off on disposal £1,387,216
Presumably the asset figure is a constant rolling total i.e. increases when we sign someone and decreases when we sell/release or, for example, they're 1 year into a 3 year deal and payments are made either to, say, an agent or Club if we're paying in yearly instalments?
 
Presumably the asset figure is a constant rolling total i.e. increases when we sign someone and decreases when we sell/release or, for example, they're 1 year into a 3 year deal and payments are made either to, say, an agent or Club if we're paying in yearly instalments?

That is basically the case,although a disposal in the balance sheet will reflect the contractual obligations due,whether we have paid them or not.