Anything the club spends money on becomes an asset of the club. The payment for these assets may happen the day they are bought, or may be spread across the life of a loan, or a mortgage.
The club's accounts show the amount written off each year over the expected useful life an asset. So what the club "fixtures and fittings" are written off over 5 to 10 years. So a car costing say £20,000 would be written off over 4 years and would hit the books for £5000 per year.
The larger the assets you have the larger the amount that they hit your books each year. Kilmarnock have far bigger assets than teams of a comparable size because of the The Park Hotel. This is valued at between £5m and £6m. This has contributed to the club having annual depreciation of close to £600,000.
In the 2005 accounts Michael Johnston's notes include the comment that the club have the "goal of 'cash-break-even' in other words, a loss that will be less than the depreciation of approximately £600,000 that will be charge to the club accounts".
