The process of financial reporting within a Gozitan football club : a historical note

Abstract

PURPOSE: The main purpose of this study was to thoroughly analyse the financial records of the chosen football club from inception to date in order to identify and understand the different accounting practices and techniques that were adopted over the years. Subsequently, any possible influences behind the implementation of certain policies and procedures were highlighted. DESIGN: A multi-method qualitative approach was utilised to achieve the research objectives whereby archival research was the main data collection instrument complemented by semi-structured interviews. FINDINGS: The financial records of the club undergone significant changes over the years, with the major developments pertaining to the preparation and presentation of the accounts. Initially, the financial records were prepared manually and they comprised of monthly cash accounts, with the financial year matching a typical football season. However, a fresh set of rules came into force in 2017 which required Gozitan football clubs to appoint an independent auditor and publish a complete set of financial statements in accordance with IFRSs as adopted by the EU to coincide with a calendar year. Apart from that, some other changes which occurred over the years included preparing the accounts using accrual-based accounting, preparing the accounts electronically, changes in national currency, changes in the use of language and changes in the frequency of reporting. Furthermore, all the interviewees agreed that the historical records are a vital part of the history of the club and should be adequately preserved. CONCLUSIONS: The changes in the financial records can be linked to social, political and organisational factors surrounding the club. In fact, increased regulation was found to be a major aspect in enhancing the financial transparency and credibility of the club due to increased accounting quality. Nonetheless, advancements in technology and the treasurer’s background in accounting and educational level have all had an influence on the changes occurring in the financial records. IMPLICATIONS/VALUE: This dissertation is the first of its kind to be carried out in Gozo, contributing further to the research area of Accounting History which is still in its infancy locally. Moreover, a study on one of Gozo’s oldest football clubs would provide a panoramic view of the evolution in financial reporting processes.