Loan repaid

[Fulham Fallout]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

The difference between a provision and a write off.  I think some of of our #financial experts should stick to the #head chef threads.

Funny you say that, as I am going to go back and look at the last balance sheet to see if the loan was still in it or not. 

Whether the loan was or wasn’t in the last balance sheet, the net result to the P&L and FFP are identical. 

The chef is currently cooking dinner and will revert.

[Pragmatist]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

The difference between a provision and a write off.  I think some of of our #financial experts should stick to the #head chef threads.

Funny you say that, as I am going to go back and look at the last balance sheet to see if the loan was still in it or not. 

Whether the loan was or wasn’t in the last balance sheet, the net result to the P&L and FFP are identical. 

The chef is currently cooking dinner and will revert.

You’ll find it in Note 4 to the Accounts.  Still existed (so not written off) and fully impaired as a doubtful debt.  

Logically, if it had already been written off then it couldn’t have been repaid now!

[CarlosCorbewrong]

Remember that FootballBets account that got everything wrong, every time...

[Fido]

Remember that FootballBets account that got everything wrong, every time...

Oh, and how someone laughed...

[Fulham Fallout]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

The difference between a provision and a write off.  I think some of of our #financial experts should stick to the #head chef threads.

Funny you say that, as I am going to go back and look at the last balance sheet to see if the loan was still in it or not. 

Whether the loan was or wasn’t in the last balance sheet, the net result to the P&L and FFP are identical. 

The chef is currently cooking dinner and will revert.

You’ll find it in Note 4 to the Accounts.  Still existed (so not written off) and fully impaired as a doubtful debt.  

Logically, if it had already been written off then it couldn’t have been repaid now!

The debtor for the loan (note 16) shows the loan present for 2021 and not for 2022 and states it’s carrying value was reduced to nil. 

If a provision had been made, the debtor would still be in the balance sheet with a corresponding credit for the provision sitting as a credit in the creditor section of the balance sheet.   There isn’t either. 

The entry made in the accounts was cr debtor, dr exceptional item in the p&l.

Re the loan being written off and repaid.  It doesn’t matter if it was previously written off in the accounts.  WBA did not sign a contract with wisdom to say you no longer need to pay us the money.  If wisdom had paid the money today, the loan would have been repaid.  We wouldn’t have said, “you can’t pay us back as we’ve debited the p&l with the full amount”.

---

Remember that FootballBets account that got everything wrong, every time...

Oh, and how someone laughed...

I did when I saw your ugly face on the E&D post match interview. 

See my reply to Prag.

[MrBater]

What a shocker, FF starts personal insults... Again. Something's really don't change, guess it's the insulting accountant persona time.

[Fulham Fallout]

What a shocker, FF starts personal insults... Again. Something's really don't change, guess it's the insulting accountant persona time.

I’m just bored of his continual posts trying to find faults with my posts. 

Clearly he has an issue with me and that’s his problem to resolve.

[MrBater]

Which would be fine if you didn't resort to personal insults. Call out his financial stuff, or whatever you lot do when you waggle your accountancy views at each other, but really no need to share your views on his looks.

[ColliersWoodBaggie]

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Sorry, I was driving home from London. Arf!

[johntoewba]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

The difference between a provision and a write off.  I think some of of our #financial experts should stick to the #head chef threads.

Funny you say that, as I am going to go back and look at the last balance sheet to see if the loan was still in it or not. 

Whether the loan was or wasn’t in the last balance sheet, the net result to the P&L and FFP are identical. 

The chef is currently cooking dinner and will revert.

Just chill out and have a beer god sometimes just give it a rest