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International Accounting
 

Restating the financial statements of Russian football clubs in accordance with International Financial Reporting Standards

Vol. 20, Iss. 3, FEBRUARY 2017

PDF  Article PDF Version

Received: 21 September 2016

Received in revised form: 24 October 2016

Accepted: 7 November 2016

Available online: 17 February 2017

Subject Heading: TRANSFORMATION OF NATIONAL REPORTING

JEL Classification: G32, Z23

Pages: 150-169

https://doi.org/10.24891/ia.20.3.150

Solntsev I.V. Plekhanov Russian University of Economics, Moscow, Russian Federation
ilia.solntsev@gmail.com

Chuchina E.A. ZAO Deloitte & Touche CIS, Moscow, Russian Federation
jennyczya@gmail.com

Importance The article considers the finance of Russian football clubs, namely the transformation of their financial statements in accordance with International standards, aimed at a fair reflection of all operations.
Objectives The aim of this study is to develop a model of restatement of Financial Statements of Russian football clubs in accordance with International Financial Reporting Standards.
Methods We considered the main items of football clubs' statements, including transfer contracts with players, stadiums, payables and receivables, debt, income and expenses, the specificity of their formation in accordance with the Russian and International accounting standards. Russian and International Financial Reporting Standards, research papers and analytical studies on finance of sports organizations and transformation of financial statements form a theoretical basis of the paper.
Results We have reviewed the annual reports of domestic and foreign football clubs. All aspects are illustrated by practical examples. We put forward certain proposals on transformation. All the proposals are approved by applying them to the PFC CSKA case: the Club's reporting got transformed in accordance with the requirements of International Financial Reporting Standards.
Conclusions and Relevance We came to the conclusion about many discrepancies in the statements made in accordance with the Russian and International standards. We have identified the causes of such differences and formulated certain proposals for transformation. The results of this study can be used by domestic football clubs to transform the accounting in accordance with IFRS. This would contribute to enhancing the transparency in the Russian football, attracting investment and the creation of a new management model, based on a fair evaluation of the assets, liabilities and transactions.

Keywords: sports finance, financial statement, football club, accounting, amortization, player transfer

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