Real Madrid capitalizes the cost of new players acquired on the transfer market and depreciates...
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Accounting
Real Madrid capitalizes the cost of new players acquired on the transfer market and depreciates this cost over the life of their contracts. The fixed asset figures reflect this accounting policy. Arsenal does not capitalize its players but accounts for player acquisition and disposal as an expense or revenue for the particular year.
You are required to consider these two accounting treatments and justify each using the concepts and conventions of accounting.
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