Norwich - Depreciation
Anything Norwich spend 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 5 years and would hit the books for £4000 per year. For more substantial assets like the stands or the executive boxes the write-off is done over a longer period of time from 5 up to 40 years depending on how long they think the asset will last.
Because these things are written off of such a long period the figures tend to vary very little on a year by year basis, and there is little that can be done to reduce the costs.
The graph below shows that the costs were fairly steady up to 2004. The increase in subsequent years comes form the building of the Jarrold Stand. The rise from 1999 to 2000 came from an accounting technicality
The depreciation figure of course comes from the total assets of Norwich. The graph below shows the figures for the total of these assets. Again the rise in 2005 comes form the new stand.
|Staff & Payroll|