NEW ARTICLE: (CHARLTON) ACCOUNTING FOR DUMMIES

AFKABartram

Am i the only one who pores over the Annual Report, nodding and gasping without really knowing what it is telling us ?

Fortunately, Bryan Matthew does know his assets from his intangibles, and highlights the key points below in a way the rest of us can understand. Clink on the link below:

http://www.charltonlife.com/blog/?p=210

eaststandmike

Great post, explains the facts in plain English

stilladdicted

I was a lot happier when I thought I had misunderstood! Thanks though.

Sailor Browneye

Considering the situation we find ourselves in shouldn't it be...

'Charlton Accounting BY Dummies'.....

;-)

AFKABartram

thanks for the feedback guys, but if others could leave comments after the article, rather than on here, it will be much appreciated, cheers

WhenIwasLittleBoy

Quality post,

McLovin

I'll add a comment on the article, but more for a forum: it's interesting that the board's loans attract interest. So having endorsed what they now acknowledge as a complete waste of funds in the transfer market by previous managers, they are drawing a return on that "investment" - on the face of it, an interesting revelation. I'd like to know how the interest rate compares to the current base.

AFKABartram

If you've not been back, some good debate amongst the comments following the article.

Henry Irving

[cite]Posted By: McLovin[/cite]I'll add a comment on the article, but more for a forum: it's interesting that the board's loans attract interest. So having endorsed what they now acknowledge as a complete waste of funds in the transfer market by previous managers, they are drawing a return on that "investment" - on the face of it, an interesting revelation. I'd like to know how the interest rate compares to the current base.

But they have, so far at least, not drawn that interest.

bingaddick

[cite]Posted By: McLovin[/cite]I'll add a comment on the article, but more for a forum: it's interesting that the board's loans attract interest. So having endorsed what they now acknowledge as a complete waste of funds in the transfer market by previous managers, they are drawing a return on that "investment" - on the face of it, an interesting revelation. I'd like to know how the interest rate compares to the current base.

As Henry said, they have not, as yet drawn any interest. I suspect that the rate would be less or certainly no more than the rate they would earn if they kept their money in a bank or building society or other investment vehicle. The implication from your post is that they are somehow fleecing the club. Ask yourself the question, if they hadn't bailed the club out, what would their personal sack of cash gained them. It would have earned them some return, so why not earn an equivalent amount but lend it to the club? The club benefits, and they are indemnified, whats wrong in principle with that. As it happens, they haven't drawn that thus far.

Whilst I accept that the Board have made some mistakes, I am beginning to worry at the tone of the criticism being levelled at them.

Scoham

Consequently, the money from Darren Bent’s move to Spurs seems to have been used to reduce this debt, which now stands at around £37m.

Where does £37m come from? We have £14m borrowed from the directors, £7m in bank loans, what is the rest of it?

Interest on these loans is due to be paid, but the total sums are not expected to be repaid until late 2014.

In the report it says-

Unredeemed and unconverted corporate bonds are redeemable at par in ten equal annual instalments commencing on 29 September 2014.

Doesn't that mean anything that isn't paid back by September 2014 will be from then on for 10 years, so until 2024?