Abstract:
One of the industries that make intangible assets the most important is the
football industry because it has a significant role in the company. Therefore, the
football industry is one sector that applies human resource accounting. The main
objective of human resource accounting is to assist company managers in measuring
the effectiveness and efficiency of human resources. Human resource accounting
provides quantitative and qualitative information to management regarding
fulfillment, development, allocation, capitalization, evaluation, and appreciation of
human resources. Thus, this study aims to determine the accounting treatment of
football players carried out by Manchester United FC and whether the accounting
treatment follows applicable accounting standards. Apart from that, the researcher
also calculates the value of player transfers using the Trinomial Tree Method and the
Black Scholes Model to present a more appropriate value of human resources.
Manchester United FC has recognized their athlete registration rights as intangible
assets, referring to IAS 38 Intangible Assets, and the researcher concludes the
Trinomial Tree Method and the Black Scholes Model can be used by management as
one of the considerations for renewing the contract or not.
