Abstract:
The purpose of this research is to propose an impairment method based on PSAK 71 for financial instrument of football club. The data used for this research is the annual report of FC Barcelona in 2018. Expected Credit Loss is the impairment method used to calculate the financial instrument. The result of this research is the contractual of the cash flow and the entity business model are required to measure financial instrument, and also PSAK 71 calculates impairment at the time when assets is recognized, this aims to prevent default in the future. This research also determine the transfer price of footballers using Binomial Tree Option in order to present a fair and true value of human resources, the value of transfer player calculated has been presented in fair value compare to transfer market exchange.
