Hi lads,

After last year's profit of $500,000 was released, there was a lot of "that works out to a $500,000 loss if you take away the $1m CBF". By my basic understanding of accounting, that statement isn't true, is it? The CBF would be recognised as equity rather than income, so it would improve cash flow for the club but ultimately have no affect on the profit figure at all.

The only way it would affect profit is if it were recognised as income, but that seems unlikely to me.

Am I right?

...nope, I've just been informed that it was recognised as income.

So there you go

Unfortunately we still have a fair way to go to become independent.

ok lets have a think about this.

we get the same amount from the afl as everyone else (maybe a bit more because of the CBF). do you still get your own gate reciepts? because this would put us behind the 8 ball a bit, but how much exactly?

the only other reason i can see that we wouldnt have as much money as other clubs is sponsorship. is sponsoring collingwood or essendon really worth that much more than sponsoring the dees? you would think that they would get similar levels of coverage and advertising (yes i know we have less members and less games on tv) but are the difference really enough to have us down a mil or 2 in sponsorship?

Under Australian Accounting Standards it is treated as income and taken through the profit and loss.

Regardless we do have to strive to be independent.

Correct for it to be profit, it would have to be classed as income/revenue.

Equity is money that comes from within or from the owners/shareholders

Hi lads,

After last year's profit of $500,000 was released, there was a lot of "that works out to a $500,000 loss if you take away the $1m CBF".

It's a little difficult without the context, but I imagine the point people were making with that comment is that without assistance we're down half a million, not up.