Glossary entry (derived from question below)
German term or phrase:
Bilanzierungshilfe
English translation:
accounting convenience
Added to glossary by
Rod Darby (X)
Apr 28, 2002 16:42
22 yrs ago
4 viewers *
German term
United States
Bilanzierungshilfe - help w/phrase
German to English
Bus/Financial
Accounting
context: audit report
"Aufwendungen für die Ingangsetzung und Erweiterung des Geschäftsbetriebes:
Die Gesellschaft machte im Geschäftsjahr 2000 von dem Wahlrecht Gebrauch, ansonsten nicht aktivierungsfähige Ingangsetzungsaufwendungen als Bilanzierungshilfe zu aktivieren."
Could I say, "In preparing their financial statements for business year 2000, the company opted to capitalize otherwise non-capitalizable startup costs," or how could I include the concept of Bilanzierungshilfe more specifically in this sentence?
Also, I'm not at all sure about "otherwise non-capitalizable." If expenses are not capitalizable (ie not recognizable as an addition to assets), then they can't be capitalized, right, or are there certain circumstances under which that would be an option ?
Any help with this context much appreciated!
"Aufwendungen für die Ingangsetzung und Erweiterung des Geschäftsbetriebes:
Die Gesellschaft machte im Geschäftsjahr 2000 von dem Wahlrecht Gebrauch, ansonsten nicht aktivierungsfähige Ingangsetzungsaufwendungen als Bilanzierungshilfe zu aktivieren."
Could I say, "In preparing their financial statements for business year 2000, the company opted to capitalize otherwise non-capitalizable startup costs," or how could I include the concept of Bilanzierungshilfe more specifically in this sentence?
Also, I'm not at all sure about "otherwise non-capitalizable." If expenses are not capitalizable (ie not recognizable as an addition to assets), then they can't be capitalized, right, or are there certain circumstances under which that would be an option ?
Any help with this context much appreciated!
Proposed translations
(English)
| 4 | accounting convenience |
Rod Darby (X)
|
| 4 +1 | recognize start-up costs as an intangible asset |
Ted Wozniak
|
| 4 | extraordinary item |
Alexander Schleber (X)
|
| 4 | phrase |
Rod Darby (X)
|
Change log
Aug 4, 2020 16:03: Steffen Walter changed "Field (write-in)" from "accounting" to "(none)"
Proposed translations
1 day 14 hrs
Selected
accounting convenience
Beth,
I don't know if this is still of any use to you, but I've now got my hands on an "official" (IDW) translation of the HGB. § 269 reads: "Expenses incurred to start up or expand a business may, to the extent that they cannot be capitalised, be carried forward as an accounting convenience; . . ."
Sorry to be so late, just got back from a short holiday in Italy, and you can picture my desk . . .
Rod
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Note added at 2002-04-30 07:41:14 (GMT)
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sorry, forgot to amend \"confidence\" to \"I am sure\"
I don't know if this is still of any use to you, but I've now got my hands on an "official" (IDW) translation of the HGB. § 269 reads: "Expenses incurred to start up or expand a business may, to the extent that they cannot be capitalised, be carried forward as an accounting convenience; . . ."
Sorry to be so late, just got back from a short holiday in Italy, and you can picture my desk . . .
Rod
--------------------------------------------------
Note added at 2002-04-30 07:41:14 (GMT)
--------------------------------------------------
sorry, forgot to amend \"confidence\" to \"I am sure\"
4 KudoZ points awarded for this answer.
Comment: " I used the term 'as an accounting convenience' but I definitely need to research this further. I didn't find "latente Steuern" anywhere, but there were some "sonstige Stueuern" in the Income Statement, and some "sonstige Verbindlichkeiten, davon aus Steuern xxx" in the B/S.)
But thanks to everyone for your help and suggestions!"
+1
20 mins
Ted Wozniak
United States
United States
Native in English
Specializes in field
United States
Bridging the Language GAAP-
Native in: English (Variant: US) 
Works in: German to English
Related KudoZ points
:
762
recognize start-up costs as an intangible asset
Under IAS 38, under certain circumstances start-up costs should be recognized as an intangible assets and capitalized accordingly. The phrase "otherwise non-capitalizable start-up costs" is perfectly fine in this context.
For more detailed info, see the IASC website below.
On an unrelated note - do you really want to use business year instead of fiscal year/accounting period/ or even financial year? Is your target audience in the US or GB?
For more detailed info, see the IASC website below.
On an unrelated note - do you really want to use business year instead of fiscal year/accounting period/ or even financial year? Is your target audience in the US or GB?
Reference:
25 mins
extraordinary item
Hi Beth,
teh way I understand it, they are adding somethinf to the balance sheet as an asset, even though this basically may not.
There are some items which are optional, as far as capitalization is concerned.
Usually, whenever there is soemthing unusual in a balance sheet, it is added as an extraordinary item, often with an appropriate commentary.
SO I thin your translation is fine, and you should just add "as an extraordinary item" after the comma.
That should cover it, IMO.
teh way I understand it, they are adding somethinf to the balance sheet as an asset, even though this basically may not.
There are some items which are optional, as far as capitalization is concerned.
Usually, whenever there is soemthing unusual in a balance sheet, it is added as an extraordinary item, often with an appropriate commentary.
SO I thin your translation is fine, and you should just add "as an extraordinary item" after the comma.
That should cover it, IMO.
Peer comment(s):
| neutral |
Eva Blanar
: A new production line or plant is not an extraordinary item, rather an "exceptional" one. Moreover, the company was allowed to do so (local accounting standards). Also: you cannot add sg to a BS without changing either the assets or the liabilities side.
15 mins
|
|
What is the difference between exceptional and extraordinary? They seem almost synonymous to me.
|
1 day 1 hr
phrase
Beth,
I'm not too sure how I'd translate this either, but I think your solution will probably be ok, as any further attempt to elucidate the meaning might only muddy the water for the average English-speaking reader.
This said, here's a little more background. § 269 HGB says: "Die Aufwendungen für die Ingangsetzung des Geschäftsbetriebs und dessen Erweiterung dürfen, soweit sie nicht bilanzierungsfähig sind, als Bilanzierungshilfe aktiviert werden; . . . ". These are costs which are not permitted by German accounting practice to be recognised as assets, but which may be removed from the profit & loss account into the balance sheet, having a favourable - but purely optical - effect on the company's profit. This is usually called "window-dressing". They are also required to be written off by some suitable method in the following years, so that in the long run the same profit is declared as would have been the case without using "Bilanzierungshilfen".
A key point to bear in mind is that "Bilanzierungshilfen" are NOT allowed by German TAX law, so the taxable profit in the year in question is the profit which would have been shown if the "Bilanzierungshilfe" had not been formed (I hope I'm not confusing you).
This latter point means that the tax burden in the year concerned is higher than the profit according to HGB would suggest, leading to deferred taxes, so you should expect an item "latente Steuern" in your balance sheet.
HTH a bit.
Rod
I'm not too sure how I'd translate this either, but I think your solution will probably be ok, as any further attempt to elucidate the meaning might only muddy the water for the average English-speaking reader.
This said, here's a little more background. § 269 HGB says: "Die Aufwendungen für die Ingangsetzung des Geschäftsbetriebs und dessen Erweiterung dürfen, soweit sie nicht bilanzierungsfähig sind, als Bilanzierungshilfe aktiviert werden; . . . ". These are costs which are not permitted by German accounting practice to be recognised as assets, but which may be removed from the profit & loss account into the balance sheet, having a favourable - but purely optical - effect on the company's profit. This is usually called "window-dressing". They are also required to be written off by some suitable method in the following years, so that in the long run the same profit is declared as would have been the case without using "Bilanzierungshilfen".
A key point to bear in mind is that "Bilanzierungshilfen" are NOT allowed by German TAX law, so the taxable profit in the year in question is the profit which would have been shown if the "Bilanzierungshilfe" had not been formed (I hope I'm not confusing you).
This latter point means that the tax burden in the year concerned is higher than the profit according to HGB would suggest, leading to deferred taxes, so you should expect an item "latente Steuern" in your balance sheet.
HTH a bit.
Rod
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