SOCPA participated in the decision of the International Accounting Standards financial report Interpretation Committee of the International Accounting Standards Board on how to account for payments when players move between clubs, in which that committee decided that the requirements of the current standards were sufficient and there was no need to issue an explanation.
In its response to International Committee’s decision, SOCPA considers that both requirements of IAS 2 “inventories” and IAS 38 “intangible assets” fall short of addressing the situation in question, which involves both the player's use of the club, the development of his skills and the sale of his registration license, as both purposes represent the usual activity of the club. SOCPA therefore proposed to the Interpretation Committee to review this subject in the light of the principles established in IAS 16 "real estate, machinery and equipment" relating to the handling of the acquisition of assets for the purpose of leasing and selling them in the normal course of business. SOCPA considered that IAS 38 needed a limited adjustment to keep pace with such developments.
SOCPA remarks can be found by clicking here.