Glossary entry (derived from question below)
German term or phrase:
mietaufwandsmindernd
English translation:
offset against rent/ rental expenses
Added to glossary by
Marc Svetov
Jul 3, 2012 01:32
11 yrs ago
German term
United States
mietaufwandsmindernd
German to English
Bus/Financial
Real Estate
Annual financial statement
"Sonderposten aus Fördermitteln
Die Gesellschaft erhielt im Jahr XXXX Fördermittel der Investitionsbank XXX als Mietkostenzuschuss fur den Neubau eines Bürogebäudes in Höhe von insgesamt EUR xxx.xxx. Der Sonderposten wird über die Mindestmietdauer von 10 Jahren, beginnend ab August xxxx, mietaufwandsmindernd aufgelost."
Offset against rental expenses?
My try: The company received subsidies totaling EUR xxxxxx from Investitionsbank xxxxx as a rent subsidy for the new construction of an office building in xxxx. This special item will dissolved over the minimum rental period of 10 years, starting in August xxxx and offset against rental expenses. ??
Die Gesellschaft erhielt im Jahr XXXX Fördermittel der Investitionsbank XXX als Mietkostenzuschuss fur den Neubau eines Bürogebäudes in Höhe von insgesamt EUR xxx.xxx. Der Sonderposten wird über die Mindestmietdauer von 10 Jahren, beginnend ab August xxxx, mietaufwandsmindernd aufgelost."
Offset against rental expenses?
My try: The company received subsidies totaling EUR xxxxxx from Investitionsbank xxxxx as a rent subsidy for the new construction of an office building in xxxx. This special item will dissolved over the minimum rental period of 10 years, starting in August xxxx and offset against rental expenses. ??
Proposed translations
(English)
| 4 +6 | offset against rent/ rental expenses |
Robert Brown (X)
|
Change log
Jul 3, 2012 06:46: Steffen Walter changed "Field (specific)" from "Finance (general)" to "Real Estate"
Proposed translations
+6
44 mins
Selected
offset against rent/ rental expenses
I agree with your original suggestion Marc as it fits with the standard method of accounting for grants.
The paragraph you have given describes this method, as set out in IAS 20 (international accounting standards):
http://www.ifrs.org/NR/rdonlyres/2713D377-04D0-4283-B2C1-26E...
The standard talks specifically about Government Grants but any grant would be expected to be accounted for in the same way.
In short, we account for a grant by setting it up as a creditor (deferred income) on the balance sheet and then releasing it over time into the income statement. Note that the expression is release not dissolve to translate auflösen here. Where the grant is intended to cover part of our outgoing costs, we would show the cost each month/quarter/year etc. net of the portion of the grant we have released and it is normal in accounting to describe this as offsetting the cost.
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Note added at 59 mins (2012-07-03 02:31:20 GMT)
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For an example of the term released see page 16, section c, middle paragraph of these published accounts:
http://www.londonmet.ac.uk/library/m81709_3.pdf
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Note added at 1 hr (2012-07-03 02:38:47 GMT)
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See also this example from Lloyd's Banking Group's published annual report for a few examples of the word offset being used in the context of showing a cost net of some income:
http://2010.lloydsbankinggroup-annualreport.com/business-rev...
The paragraph you have given describes this method, as set out in IAS 20 (international accounting standards):
http://www.ifrs.org/NR/rdonlyres/2713D377-04D0-4283-B2C1-26E...
The standard talks specifically about Government Grants but any grant would be expected to be accounted for in the same way.
In short, we account for a grant by setting it up as a creditor (deferred income) on the balance sheet and then releasing it over time into the income statement. Note that the expression is release not dissolve to translate auflösen here. Where the grant is intended to cover part of our outgoing costs, we would show the cost each month/quarter/year etc. net of the portion of the grant we have released and it is normal in accounting to describe this as offsetting the cost.
--------------------------------------------------
Note added at 59 mins (2012-07-03 02:31:20 GMT)
--------------------------------------------------
For an example of the term released see page 16, section c, middle paragraph of these published accounts:
http://www.londonmet.ac.uk/library/m81709_3.pdf
--------------------------------------------------
Note added at 1 hr (2012-07-03 02:38:47 GMT)
--------------------------------------------------
See also this example from Lloyd's Banking Group's published annual report for a few examples of the word offset being used in the context of showing a cost net of some income:
http://2010.lloydsbankinggroup-annualreport.com/business-rev...
4 KudoZ points awarded for this answer.
Comment: "Thanks!"
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