Hard to say just based on that. But, if whatever a revaluation reserve relates to is derecognised then any revaluation surplus goes to retained earnings rather than directly though the P&L account. So it will be shown in the statement of changes in equity - which is what that pic is doing by the looks of it.
Thank you and that was in accordance with my thinking from further reading...surprise surprise, it is/was Derby proposing this. Unsure they will get it through FFP/P&S- seems opportunistic/desperate to say the least...the reasons as to why it is opportunistic and desperate I'll post about on there.
Might see you on the Amortisation thread- glad to see you back btw, hope you are well!
May as well also add, the Reserves transfer and the original Revaluation back in 2007...
Revaluation back in December 2007, hence the Revaluation Reserve- the owners at that time purchased the Club in 2007 hence the Revaluation of Assets.
Land and Buildings also includes Training Ground and probably one or two other things- but anyway we can see it's Accounted for both in the Revaluation Reserve and on the section under Tangible Assets. Revaluation Reserve £39,554,000 is equal to a Revaluation Adjustment of £34,147,000 plus an elimination of Depreciation of £5,407,000...
Literally, the most recent set of Accounts the Club have published- 2018, the year of the Stadium Sale. All of the Revaluations and changes therein, additions, subtractions etc were Accounted for on the Tangible Fixed Assets bit between 2007/08 and 2017/18.
They transferred to Profit and Loss Account in year of sale...but surely to stick it into P&L Account proper, there would need to be an overall Profit there...surely you cannot just do this and cherry pick one aspect when the overall Profit and Loss Account shows a negative figure even including the Revaluation Reserve Transfer of £42,004,640!
In any event, I see nothing in the FFP Regulations- or quite specifically- the Calculations form- that permits this treatment for this purpose, by which I mean the FFP calculations.
PPS- it's interesting that Stephen Pearce- Derby CEO who was a Club Rep on the Board should claim this within the last month or two in the Disciplinary Process...I say was, he stood down to focus on Derby but his position likely fairly untenable- interesting he should be talking like this...
...Then said Monday that Derby needed to, wanted to be building bridges with the EFL and other clubs! During a Disciplinary Process, a key stage, ie where their Accounts are due to be Restated to freshly reassess FFP numbers- this request was doubtless cascading from the Owner- what chutzpah! Hope the EFL are having none of it, at least until Disciplinary has passed.
Think I've found the answer to this- at least for the FFP/P&S Regs. Also something in the EFL divisional rules below the Championship about how Revaluation Reserves don't count towards profit.
Now I always thought, FWIW- by evidence of this thread- that to include the Revaluation Reserve as an additional Profit on Disposal, well they were on shaky ground. Particularly years after the event (sale in Spring/early Summer 2018, proposed about 3 years on by the CEO of Derby). Put simply, given their track record I believed that they were trying it on to some extent.