Would love to see QPR relegated to the conference. Rotherham win tonight, Millwall lose to Wolves and Wigan beat Brentford = Millwall still relegated and QPR chucked out, happy days!
I don't understand the article. Perhaps someone could explain how writing off £60mn in loans has any effect whatsoever on the profit & loss? Surely that's just reducing the liabilities on the balance sheet?
QPR had a liability on their balance sheet which now they don't have to pay. So they take the liability of their balance sheet and it is in effect a profit.
A simple example would be you owe someone £20 , they let you off so you have made a profit of £20.
That sounds ridiculous to me! How can it be turned into a profit?!
If the liability previously showed on the balance sheet then there would have been a corresponding "expense" or "cost" for that liability in the profit and loss.
If you then write that liability off of the balance sheet then to be logical and consistent you have to write it back to profit and loss.
I don't understand the article. Perhaps someone could explain how writing off £60mn in loans has any effect whatsoever on the profit & loss? Surely that's just reducing the liabilities on the balance sheet?
QPR had a liability on their balance sheet which now they don't have to pay. So they take the liability of their balance sheet and it is in effect a profit.
A simple example would be you owe someone £20 , they let you off so you have made a profit of £20.
That sounds ridiculous to me! How can it be turned into a profit?!
If the liability previously showed on the balance sheet then there would have been a corresponding "expense" or "cost" for that liability in the profit and loss.
If you then write that liability off of the balance sheet then to be logical and consistent you have to write it back to profit and loss.
Thanks, Len. Financial stuff like this leaves me bewildered.
Comments
sorry if this brings a downer on anyone's day
I think that dismantles their mantra in one fell swoop!!
If you then write that liability off of the balance sheet then to be logical and consistent you have to write it back to profit and loss.