Re: STFC Accounts

By Arthur7/10/2021 08:55Thu Oct 7 08:55:26 2021In response to STFC Accounts

Views: 1015

Norm, even after the use of magic mushrooms, a habit I picked up from the Surrey Sage, I still understand double entry book-keeping and can read a set of accounts. I love them. The STFC accounts do, as you rightly point out, that there is a sum of £158,618, categorised as a long term loan to directors. There is only one Director (the man vilified by many on this forum). What you don't really understand is that this is a creditor - a sum the company owes to that man. The shareholders fund are a negative £188,618. This means that the company, the football club, is bust. It should cease trading as soon as the shareholders funds reach zero. |it must then go into administration or liquidation, as appropriate, and realise (sell) its assets to return money to creditors and shareholders in a prescribed manner. The only reason the club continues to trade (see going concern note) is that the director has guaranteed the continuance of trade for the following 12 months. In simple terms this means that Joe Dixon has funded the club out of his own pocket for this amount. It is money that could have been spent on the team, but he has had to pay the bills - gas, electricity, legal costs. answering spurious letters from our landlords, along with manager and player wages. This money has come from his pocket, not yours , not mine, not Wakes, not John Blair, not Staines Loyal ......... and we slag the man off. I believe an apology is needed.

Using the accounting information, the Thames Club accounts were indeed filed on 5 October. There is lots of information for geeks like me. For example there are lots of accounting policies relating to revenue recognition (turnover), and financing costs (interest) which relate to disclosures made in the income statement (profit and loss account0. There is no income statement. They have opted for minimal disclosure to users of rthe accounts. The interesting item here is the movement in shareholders funds - the level of solvency (see above) which have fallen from £1,142,361 in 2019 to £117,443 act the end of 2020. As soon as they reach zero, in a trading period they must cease trading etc. They are our landlords, at least until the next break in the lease term (circa 6 or 7 years). Nobody (corporate nor individual) has guaranteed their future trade - and there are still pandemic issues to be reported in their current year accounts. Thank goodness we have Joe.

That's it for accounting issues, let's look forward to Saturday. I hope we have retained the majority of the squad, as it seemed to be gelling. Personally I would appoint Rhys Paul as a player manager. However, that appointment is down to the club and the Chair ......Hopefully we will be competitive against Three bridges. See you Saturday, debtors and creditors permitting!!

reply to this article | return to the front page