I must say that I never thought of Dela as the cure for anything
Surely with Brexit , the state of the health service , Brexit , homelessness and tax justice , this Murdoch rag has other more important things to investigate than a mere sports administrator .
Je suis Dela
In the 90âs
Could any accountants confirm whether a bridging loan from a director that is granted and repaid within the same accounting year should be explicitly disclosed in the year-end audited accounts? Iâm naturally seeking replies from chartered accountants only.
Knock yourself out
https://www.ifrs.org/issued-standards/list-of-standards/ias-24-related-party-disclosures/
It would likely fall to be considered a related party transaction so would need to be disclosed, pal. Also, any interest (or lack thereof) would need to be disclosed.
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Many thanks for the swift response @Rocko.
This could turn out to be a very black day for the associationâs auditors.
What area of accounting do you specialise in?
Would you have to disclose it if paid back? I thought it was only transactions of substance and outstanding balances. Itâs an in and an out of the balance sheet. Itâs not around year end so wouldnât be window dressing.
An auditor wouldnât pick that up without being told about it.
Did Sepp Delaney get a receipt?
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An auditor picks up absolutely nothing unless told about it
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On this occasion, why would they? If itâs in June and your year end is December then you never will. To quote Bandage, âauditors are like watchdogs, not bloodhoundsâ. They have testing thresholds and wonât be combing the entire bank transactions for the year.
Youâd assume that they would ask about any Related Party Transactions during the year and it would be good governance for Delaney to tell them. Iâm not sure that would require disclosure though. A 100k in and out in a couple of weeks? Any interest would be immaterial.
The question would be about the overall fragility of the finances given that a sporting body with members needs a bailout from its CEO and you would guess didnât have the liquidity from their bank to cover it.
Do you work in banking or finance sectors Tim?
This was far more likely to be done to meet a quarterly banking covenant test than to cover a short term cashflow issue.
sweep sweep
Mad weekend for the boys discussing accounting practices.
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Youâd want your head examined to be the auditor for the FAI
Fair enough. But wouldnât expect an auditor to pick it up without being told.
The matter arose in the context of in camera proceedings.
Whatâs the big problem with it anyway?
Why did they need a loan off him at all? Why wasnât it reported in the accounts? Was he paid interest? Etc etc etc
And thatâs assuming you actually believe that version of events. Which seem a bit off to say the least