IFRS IC publishes agenda decision on player transfer payments
The IFRS Interpretations Committee (IFRS IC) received a request about the recognition in profit or loss of transfer payments received when a football club transfers a player under contract to another club.
Keywords: Mazars, Thailand, IFRS IC, IFRS, IAS 38
31 August 2020
In the fact pattern submitted to the Committee, the first club originally paid an amount to another club for the exclusive right to the player’s services over a set period. This right was recognised as an intangible asset under IAS 38.
In the June 2020 IFRIC Update, the Committee stated that the transfer payment received by the club shall be taken into account when calculating the gain or loss to be recognised in accordance with paragraph 113 of IAS 38 for derecognition of the intangible asset. There is thus no revenue to be recognised under IFRS 15.
The player transfer payment shall be presented as part of investing activities in the statement of cash flows.
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