Accounting problems in the subsequent evaluation of the rights to football players

Abstract

Acquired rights to football players are a specific intangible asset and therefore have different features in their initial and subsequent valuation. The purpose of this paper is to make a critical analysis of the factors that determine the downgrading of players' value, which is a prerequisite for recognizing accounting impairment of acquired rights to players. According to the International Financial Reporting Standards (IFRS) at the end of each reporting period, a football club is required to assess whether there is any indication that a footballer may be impaired. The aim of this paper is to analyze this specific procedure because the rights to the players are different from the other intangible assets, as their value depends very much on the results achieved by the individual footballer.