Delaney: Eight clubs made profit

[Bald Student]

What I meant by common language was that most people do their household budgeting on a cash basis. If someone keeps a budget at home it's on a money in / money out basis. That's how most people look at budgeting.

I think you're letting your specialist knowledge of accountancy distract you. Most people don't use technical terms with the same precision as a professional in the area. Fintan's use of the words 'profit' and 'loss' aren't technically correct in the world of accountancy but they're in line with what most normal people understand them to mean.

[pineapple stu]

When you're running a business though, it's more important. There's a big difference between being cash neutral and breaking even. It could be argued Drogheda were breaking even over the past couple of years by having money pumped into them and by not paying the Revenue. Whether most people use the two to describe the same thing is irrelevant.

And bear in mind, his initial question was specifically on a technical level.

[Dodge]

Whether most people use the two to describe the same thing is irrelevant

No its not. Fintan has quite clearly explained the situation, as far as he knows. Whether you choose to ignore that, or try and use his use of specific phrases against him is quite clearly relevant.

[pineapple stu]

No its not. Fintan has quite clearly explained the situation, as far as he knows.
It is relevant; the alternative is that something which is wrong can become right by common usage, which is clearly nonsense.

And the answer to the question he posed,


Technically speaking does this qualify as a loss - i.e an asset was sold to balance the books?
is yes, it does qualify as a loss.

Suggest we leave it there.

[Dodge]

Whether most people use the two to describe the same thing is irrelevant.



It is relevant;

okey then. We'll leave it there

[Bald Student]

It is relevant; the alternative is that something which is wrong can become right by common usage, which is clearly nonsense.I think there's a difference between wrong and imprecise.

Either way, we're in agreement on the facts of the case. The words used to describe them are less important.

[pineapple stu]

okey then. We'll leave it there
Some nice selective quoting there Dodge. ;)

What's irrelevant is what meaning people use a phrase for if it's being used incorrectly. The fact that it's being used incorrectly, however, is relevant.

[geysir]

Afaiu, Delaney got it right over the directors cash input
He is correct to classify a directors cash input (a donation) to a club as income, as he says,'as long as it doesn't have to be paid back'
It is written into the books as other income, similar to cash from fundraising activities.

A club selling a club asset have to mark that in as income in the years running account. It would be criminal accounting practice not to do so.
But whether they made a profit or loss on that asset sale depends on if it was sold for more or less than the book value of that asset as recorded in the previous years accounts (with adjustment for a years depreciation or appreciation).

[Kildareman]

a plan to move into home farms ground and building a new stand there was rejected by home farm so we're still lookin

You moved into Home Farms old ground years ago and just look at what you's did to it through mismanagement !!!:D
You can't blame them for not wanting you in their "new" home.