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Kansas City Zephyrs Baseball Club Case Study

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Kansas City Zephyrs Baseball Club Case Study
Kansas City Zephyrs Baseball Club

Roster Depreciation

✓ Economic Reality =US GAAP

I agree that most of the players actually improved their skill with experience, so if anything, there should be an increase in roster values over time. So from the perspective of economic reality, this is valuable asset like intangible assets.
This asset is similar to the good will. Under previous US GAAP, the goodwill should be depreciated but in new US GAAP, it has been changed not to be depreciated. So it should be evaluated at every end of year without depreciation. This change is a trial to conform Economic reality to US GAAP.

Salary related cost

a. Current roster salary

(Economic Reality =US GAAP) 100% of each salary should be expensed
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