Audited accounts?

[Ozyhibby]

Do they have to submit audited accounts by the end of the month to be able to play in Europe?
Not seen any mention of it in the press.

[down-the-slope]

Yes

[jgl07]

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Do they have to submit audited accounts by the end of the month to be able to play in Europe?
Not seen any mention of it in the press.

I don't think you will either.

For the past two or three years, maybe more, Hearts have been technically insolvent. The only reason the auditors signed up for the past two years is that they have accepted assurances that UBIG are backing Hearts financially. This was a leap of faith because UBIG themselves have not produced any accounts for some time.

Now since Romanov has publically stated that UBIG will no longer continue to pump money into Hearts, the Auditors would be foolish to accept any such assurances this time even if they are forthcoming.

Hence no audited accounts so far. Hence no Hearts in Europe even if they do qualify.

They are not currently in a qualifying position anyway.

[Ozyhibby]

Good, just that with rangers out the picture there would be an extra place available, so it's nice to know it's not going to them.

[CropleyWasGod]

It's all part of Rod's master plan.

Sod good fitba....good Balance Sheets will get us into Europe

[inglisavhibs]

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Do they have to submit audited accounts by the end of the month to be able to play in Europe?
Not seen any mention of it in the press.

They are between a rock and a hard place as they can't go into administration (ubig would lose a lot of money as they are by far the main creditor) and they can't really afford to keep hearts going. The only positive is that they take over 2m in interest from Hearts each year. Can't see how UbIG can get out of this.

[CropleyWasGod]

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They are between a rock and a hard place as they can't go into administration (ubig would lose a lot of money as they are by far the main creditor) and they can't really afford to keep hearts going. The only positive is that they take over 2m in interest from Hearts each year. Can't see how UbIG can get out of this.

I can't see them going into administration tbh. I think it will be straight to the morgue, whenever the cash runs out.

[Saorsa]

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I can't see them going into administration tbh. I think it will be straight to the morgue, whenever the cash runs out.

[greenginger]

I think they have to produce their audited accounts for the SPL's scrutiny by the end of April or they could be refused entry to the league next season.

[Jones28]

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I can't see them going into administration tbh. I think it will be straight to the morgue, whenever the cash runs out.

Just like Gretna, the cash stopped and it was a scarily short time after that they went to the wall. Hopefully

[jgl07]

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Just like Gretna, the cash stopped and it was a scarily short time after that they went to the wall. Hopefully

That's not how I recall it. Gretna went into Administration when the financial plug was pulled. They were propped up by the SPL until the end of the season.

Hopefully there will be a double liquidation by the end of the season?

[huggie1875]

So thats why theres been all the talk about a 10 team league

[Kaiser1962]

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I can't see them going into administration tbh. I think it will be straight to the morgue, whenever the cash runs out.

The administration process would serve no purpose as creditor and debtor are, to all intents and purposes, one and the same.

That said, however, if rumours of EBT's being used in Campbell Ogilvie's time then HMRC may have a role to play in their eventuall demise although Vlad has managed to keep the wolves at arm's length, thus far at least.

[Caversham Green]

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I don't think you will either.

For the past two or three years, maybe more, Hearts have been technically insolvent. The only reason the auditors signed up for the past two years is that they have accepted assurances that UBIG are backing Hearts financially. This was a leap of faith because UBIG themselves have not produced any accounts for some time.

Now since Romanov has publically stated that UBIG will no longer continue to pump money into Hearts, the Auditors would be foolish to accept any such assurances this time even if they are forthcoming.

Hence no audited accounts so far. Hence no Hearts in Europe even if they do qualify.

They are not currently in a qualifying position anyway.

The key issue here is 'going concern'. GC is fundamental to any audit and is probably the single most important matter auditors need to consider. Since 2005-06 the accounts and/or audit reports have carried statements to the effect that the club was dependent on the continued financial support of UBIG to remain a going concern. Since the last accounts were issued there have been press reports and a statement on the club's own website suggesting that funding from UBIG was no longer available, so the obvious conclusion is that the club is no longer a going concern.

If the auditors choose to provide a report (unless Mr Romanov can pull something out of the bag PDQ) they will have to state that preparing the accounts on a going concern basis was inappropriate and summarise the difference between the figures as they stand and how they would be on a liquidation basis. That involves a lot of extra work and, besides the questionable ethics of incurring costs which the client can't afford, they are unlikely to be paid for it ....as the club is not a going concern.

I'll be interested from a professional point of view to see how it all pans out.

[Caversham Green]

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The administration process would serve no purpose as creditor and debtor are, to all intents and purposes, one and the same.

That said, however, if rumours of EBT's being used in Campbell Ogilvie's time then HMRC may have a role to play in their eventuall demise although Vlad has managed to keep the wolves at arm's length, thus far at least.

I reckon the club itself would benefit from administration, but the truth is that Mr Romanov/UBIG can achieve the same result (for themselves) without incurring the costs - in fact it could be argued that they are already doing that by stopping the funding, trying to sell players and 'advertising' the club for sale. They have far less chance of finding a buyer than Rangers (I agree with Phil McGullible's view on that BTW) and, unless Mr Romanov has a 'Road to Yamascus' moment, the only other likely scenario is liquidation.

[Ozyhibby]

Is it the SFA or EUFA who enforce this? Is it likely to happen?

[Caversham Green]

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Is it the SFA or EUFA who enforce this? Is it likely to happen?

As I understand it it's a UEFA guideline, but the SFA have the option to put a club forward even if they are in default. Can't see them doing that in the current climate though.

[johnrebus]

Vlad has been remarkably quiet recently - upstaged by the Huns obviously.

However, it is only a matter of time before he goes off on another one.

But who is to say he won't have a volte face and start pumping cash back into the club? He is as unpredictable as the Scottish weather.

[jgl07]

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As I understand it it's a UEFA guideline, but the SFA have the option to put a club forward even if they are in default. Can't see them doing that in the current climate though.

Given the news that hearts players will not be paid on time yet again this month will add to the factors that the auditors will need to consider before signing off the Hearts' Accounts.

It will make it even less likely that Hearts will be put forward for a European place even if they do finish in a qualifying position.

[IWasThere2016]

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It's all part of Rod's master plan.

Sod good fitba....good Balance Sheets will get us into Europe

Sensible conttingency given his ability to appoint decent managers

The Yams could still qualify for Europe via the Cup, and I'm sure Vlad's watching very closely the situation at the Big(oted) Hoose :

[NYHibby]

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The Yams could still qualify for Europe via the Cup, and I'm sure Vlad's watching very closely the situation at the Big(oted) Hoose :

The same UEFA rules apply if you qualify via the cup versus if you qualify via the league.

[Viva_Palmeiras]

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I can't see them going into administration tbh. I think it will be straight to the morgue, whenever the cash runs out.

What if Vlad does a debt for equity swap taking his controlling interest to over 90% ?
Can he then not make the company private and therefore have no need to publish accounts for public scrutiny?
as I understand it Bransons empire is/was run in a similar way - so noone really knows what the secret of success is. Gives more flexibility and less constraints/obligations re stock exchange?

DOH! See it's accounts for the Spl scrutiny..

[NYHibby]

Yeah, regardless of any Companies Act requirements, he would still need to comply with SPL/SFA/UEFA rules.

[Kaiser1962]

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I reckon the club itself would benefit from administration, but the truth is that Mr Romanov/UBIG can achieve the same result (for themselves) without incurring the costs - in fact it could be argued that they are already doing that by stopping the funding, trying to sell players and 'advertising' the club for sale. They have far less chance of finding a buyer than Rangers (I agree with Phil McGullible's view on that BTW) and, unless Mr Romanov has a 'Road to Yamascus' moment, the only other likely scenario is liquidation.

I would think its one of their few ways out of this, if not the only one.

I perhaps should have said that I couldnt see how administration would benefit Vlad/UBIG/Ukio which may explain why Vlad, unlike Whyte, has kept HMRC at arms length and ensured the taxman has been paid at the expense of the staff when the Hun did it the other way round.

[HIBERNIAN-0762]

So, after all this legal mumbo jumbo about this what I want to know is...


WHEN ARE THE S.F.A. GOING TO DO SOMETHING ABOUT THEM??

[Caversham Green]

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What if Vlad does a debt for equity swap taking his controlling interest to over 90% ?
Can he then not make the company private and therefore have no need to publish accounts for public scrutiny?
as I understand it Bransons empire is/was run in a similar way - so noone really knows what the secret of success is. Gives more flexibility and less constraints/obligations re stock exchange?

DOH! See it's accounts for the Spl scrutiny..

They'd still have to publish audited accounts in any case - slightly less detailed, but they're still required.

[Caversham Green]

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I would think its one of their few ways out of this, if not the only one.

I perhaps should have said that I couldnt see how administration would benefit Vlad/UBIG/Ukio which may explain why Vlad, unlike Whyte, has kept HMRC at arms length and ensured the taxman has been paid at the expense of the staff when the Hun did it the other way round.

All administration would do is reduce the amount of money Mr Romanov can recover from the rotting corpse of HoMFC.

[magpie1892]

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Vlad has been remarkably quiet recently - upstaged by the Huns obviously.

However, it is only a matter of time before he goes off on another one.

But who is to say he won't have a volte face and start pumping cash back into the club? He is as unpredictable as the Scottish weather.

Is he not skint? He's not the financial force he once was, that's for sure.

[Kato]

I just hope we give them a damn good auditing over the weekend.

[IWasThere2016]

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The same UEFA rules apply if you qualify via the cup versus if you qualify via the league.

Correct - but an earlier posts said they were unlikely to qualify for Europe.

Whilst I agree - that is the case - it is possible they may still quality.

Mon the Buddies!