ASSESSMENT OF ATHLETES VALUE BY HUMAN RESOURCE ACCOUNTING IN FOOTBALL INDUSTRY

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.