Analysis of player registration by professional football clubs based on reporting compiled in accordance with national and international standards

Sports clubs’ achievements directly depend on the professional skills of their players, who are one of their most valuable assets. The aim of the study is to compare the practice of accounting for expenses on the purchase of registration rights for players by football clubs in accordance with Russian and international standards, to develop recommendations for their reflection in the balance sheet and the financial performance report to ensure comparability of the reporting of Russian clubs. The authors analyzed the professional judgments of leading European clubs in terms of classifying profit or loss from transfer activities, as well as cash flows associated with the acquisition and disposal of player registrations. The main factors that influenced the organization’s decision to classify income received from the sale of registration rights, either as part of revenue, operating or other income, are noted. The article analyzes the main requirements for financial reporting of football clubs in the Russian Federation. The study shows that Russian accounting practice lags behind international practice in terms of reflecting the registration of players, who are the key asset of professional football clubs: unlike international standards, they are not included in intangible assets, but can be reflected either in current expenses or in expenses of future periods. All this makes it impossible to compare the financial indicators of various Russian football clubs. A distinctive feature of the proposed approach to classifying the costs of purchasing player registrations and reflecting income and expenses from transfer activities is its focus on unifying the information presented in the balance sheet, financial performance report and cash flow statement of Russian football clubs.