Corporate Finance Accounting Case Study

Open, View, and/or
Download this Document

Total Length: 601 words ( 2 double-spaced pages)

Total Sources: 0

Page 1 of 2

Coporate Finance/Accounting

The first area of dispute in the Kansas City Zephyrs accounting disagreement between the owners and the players is roster depreciation, which the owners claim causes them a loss of 2 million dollars and which the players do not recognize. It appears as though the players are correct for not recognizing this loss, since the only time that expense occurs is when a team is bought by someone else. Additionally, by mitigating this possibility with the effect that players improve with experience and training and the players are right.

In terms of current roster salary it appears as though the players are right in the case of the Zephyrs. Their rectitude is based on the fact that the owners are actually paying part of the player's salary much later (10 years) than they are recognizing losses for. The Zephyrs are not paying that money now, although other teams are.

The owners are definitely right about the issue regarding the amortization of signing bonuses, which is a matter of $716,000.

Stuck Writing Your "Corporate Finance Accounting" Case Study?

View All Our Example Corporate Finance Accounting Case Study

Have A Custom Example Essay Written

This is money that they have paid out. Moreover, it is possible that players may not complete the terms of their contract, which means these losses are valid.

The players are definitely right about the dispute regarding the non-roster guaranteed contract expense. These expenses should be recorded when they are actually disseminated and paid, not when a player leaves the roster for the simple fact that it is possible the player can sign to another team which will pay that expense. This is a difference of $750,000.

The players of the Zephyrs are right about the stadium operations expenses, since two of the owners of the team are also the sole owners of the stadium and are reaping the benefits of this situation accordingly.

The phenomenon in accounting practices….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Corporate Finance Accounting" (2013, August 11) Retrieved May 22, 2025, from
https://www.aceyourpaper.com/essays/corporate-finance-accounting-94407

Latest MLA Format (8th edition)

Copy Reference
"Corporate Finance Accounting" 11 August 2013. Web.22 May. 2025. <
https://www.aceyourpaper.com/essays/corporate-finance-accounting-94407>

Latest Chicago Format (16th edition)

Copy Reference
"Corporate Finance Accounting", 11 August 2013, Accessed.22 May. 2025,
https://www.aceyourpaper.com/essays/corporate-finance-accounting-94407
   

Open, View, and/or
Download this Document
order custom essay example