UK Technical query- what constitutes a post balance sheet event?

[AnAspiringAccountant]

Here we go again...? Well maybe!
Unsure it is yet a post balance sheet event, similar but different.

Stoke City
Yet to release their 2020/21 accounts although the Bet365 accounts state that stadium was sold on 28th May 2021 for £70m or thereabouts! I say sold, it was sold from Stoke City Property to Bet365 but Stoke City Holdings- which incorporates Stoke City FC and Stoke City Property already sit under Bet365.

Putting aside the bits about valuation or Proceeds - Carrying Value ie Kieran Maguire stated a potential £65m profit on disposal, erm the Land Registry troubles me. I revisited this owing to some similarities...and there is an added dimension here.

SWFC as they could not include the Profit in 2017/18 could do so in 2018/19 but unlike then, the rules have now changed and Profits or Losses from Disposal of Fixed Assets are verbatim EXCLUDED from FFP/P&S calcs.

Land Registry entry is interesting to see because 10 months and a little more on it still sits under the ownership of Stoke City Property Limited- the very company/subsidiary who sold it to Bet365 last May.

But, 'Title passing' is crucial in accounting because that's the point when you recognise the revenue from a sale in your accounts. It doesn't matter at which point you actually get the money, it's the point in time that title passes that matters. So, it could be that the contract of sale was legally binding in the financial period, with the agreement that the money would be paid at a later date. It's not out of the ordinary.

Think I have a vague idea- is title passing linked to the date at the Land Registry? Have a much better understanding of Deferred Proceeds etc now than Autumn 2019, indeed of how Accounting and P&S/FFP fit in general- and a good chunk is thanks to you. Thanks @Fidget .

 

[AnAspiringAccountant]

This has three potentially significant factors here- for FFP/P&S at least...

1. Stoke City's accounts run from 1st June-31st May. In this instance unless they've shifted it, it'd be to 31st May 2021.
2. The Land Registry still shows ownership on a date- by the company/subsidiary who as per the Bet 365 accounts had 'sold' it in May, on 2nd June 2021. A fact that still remains 10 months on.
3. From an FFP perspective, it is not just the season of 2021/22 whereby Fixed Asset Profits are adjusted out but the Reference Period covering that season.

Accounting Reference Period covering that season could surely be construed as inclusive of the accounts that begin 1st June 2021 and run until 31st May 2022 no? As such an argument if not fully registered in time to exclude it from the accounts to 31st May 2021?