G.1 Principles - Club Licensing

G.1.1

Financial statements as defined in Article 66 and Article 68 must be based on the accounting standards required by local legislation for incorporated companies – either the applicable financial reporting framework of the relevant country, the International Financial Reporting Standards or the International Financial Reporting Standard for Small and Medium-sized Entities – regardless of the legal structure of the licence applicant.

G.1.2

Financial statements must be prepared on the assumption that the licence applicant is a going concern, meaning it will continue in operation for the foreseeable future. It is assumed that the licence applicant has no intention or need to go into liquidation, cease trading or seek protection from creditors pursuant to laws or regulations.

G.1.3

The financial reporting framework, suitable as a basis for the preparation of financial statements, must contain certain underlying principles including:

1. fair presentation;

2. consistency of presentation;

3. accrual basis for accounting;

4. separate presentation of each material class of items;

5. no offsetting of assets and liabilities or income and expenses.

G.1.4

Notwithstanding that each licence applicant has to prepare annual financial statements and interim financial statements under its own national accounting practice for incorporated companies, the International Financial Reporting Standards or the International Financial Reporting Standard for Small and Medium-sized Entities, these regulations include specific accounting requirements to be complied with as set out in Annex G.2 to Annex G.6.

G.1.5

If the annual financial statements and/or interim financial statements are not in compliance with the accounting requirements set out in Annex G, then the licence applicant must also submit to the licensor:

1. restated financial statements to meet the accounting requirements set out in Annex G, covering the same period and including comparative amounts for the previous comparative period;

2. a declaration by the licence applicant’s management that the restated financial statements are complete, accurate and in compliance with the regulations; and

3. an assessment report provided by the same auditor that signs the annual financial statements and/or interim financial statements by way of agreed-upon procedures prescribed by the licensor in respect of the completeness and accuracy of the restated financial statements.

G.1.6

Restated financial statements must include:

1. a restated balance sheet as at the end of the period;

2. a restated profit and loss account/income statement for the period;

3. a restated statement of changes in equity for the period; and

4. notes, comprising a summary of significant accounting policies, other explanatory notes, and a note (or notes) reconciling the balance sheet and profit and loss account/income statement between the restated financial statements and the relevant annual financial statements or interim financial statements.