John Delaney/ tugging off half the forum

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 90’s

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? I’m 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.

2 Likes

Many thanks for the swift response @Rocko.

This could turn out to be a very black day for the association’s 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. It’s an in and an out of the balance sheet. It’s not around year end so wouldn’t be window dressing.

An auditor wouldn’t pick that up without being told about it.

Did Sepp Delaney get a receipt?

2 Likes

An auditor picks up absolutely nothing unless told about it

10 Likes

On this occasion, why would they? If it’s in June and your year end is December then you never will. To quote Bandage, “auditors are like watchdogs, not bloodhounds”. They have testing thresholds and won’t be combing the entire bank transactions for the year.

You’d assume that they would ask about any Related Party Transactions during the year and it would be good governance for Delaney to tell them. I’m 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 didn’t 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.

9 Likes

You’d want your head examined to be the auditor for the FAI

Fair enough. But wouldn’t expect an auditor to pick it up without being told.

The matter arose in the context of in camera proceedings.

What’s the big problem with it anyway?

Why did they need a loan off him at all? Why wasn’t it reported in the accounts? Was he paid interest? Etc etc etc

And that’s assuming you actually believe that version of events. Which seem a bit off to say the least