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Footballers as assets
One of the well-known soccer clubs in Britain, Liverchester, has made a decision to include its players on the club's statement of financial position as assets. These players are signed to the club every 3 years and are paid large amounts of money by the club each year under various contracts. The club also insists on a transfer fee being paid if a player wishes to go to another club while under contract.
Required
Question 1: Discuss whether the Liverchester club is justified in its action of treating players as assets, by reference to appropriate accounting regulations.
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