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Auflösung latenter Steuern

English translation: reversal of activated deferred taxes

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Auflösung latenter Steuern
English translation:reversal of activated deferred taxes
Entered by: Alexander Schleber (X)

13:38 Oct 24, 2002
German to English translations [PRO]
Bus/Financial - Accounting
German term or phrase: Auflösung latenter Steuern
"Auflösung latenter Steuern führt zu hohem Verlust."

I do not understand this sentence. "Auflösung" usually means to me that provisions, for instance for possible taxes in this case, are released. The provision would have burdened profits when it was created and should (if I am not wrong) increase profits when it is released.

HELP
Alexander Schleber (X)
Belgium
Local time: 02:55
reversal of deferred taxes
Explanation:
latente Steuern gibt es auch auf der Aktivseite der Bilanz (für Steuergutschriften). Hier ist es ein Abgrenzungsposten und keine Rückstellung

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Note added at 2002-10-24 14:16:16 (GMT)
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Beispiel: This reversal of deferred taxes was netted against certain other tax provisions to provide a net reduction in the provisions for taxes of $926,000 for the second quarter.

website: http://www.draxis.com/Company/Press_Releases/1996/0729q2.htm...

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Note added at 2002-10-24 14:53:43 (GMT)
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oh yes, thank you TonyTK! my agree to Ralf\'s suggestion was too fast. In my opinion they are talking about tax assets (didn\'t really see the liabilties...)
Selected response from:

Astrid Cruse
Local time: 02:55
Grading comment
Thanks to all of you.
This was a difficult one. I finally used "reversal of activated deferred taxes", which seems to make sense of the loss that is being created. Unfortunately the author was not very helpful in his formulations.

4 KudoZ points were awarded for this answer



Summary of answers provided
4 +2reversal of deferred taxes
Astrid Cruse
2 +3reversal of deferred tax liabilities
Ralf Lemster
3Removal of the provision for possible taxes
Robin Salmon (X)


Discussion entries: 1





  

Answers


31 mins   confidence: Answerer confidence 2/5Answerer confidence 2/5 peer agreement (net): +3
reversal of deferred tax liabilities


Explanation:
I don't quite get it either... the reversal or release shouldn't have an impact on profitability, whereas the original provision would have burdened the income statement.

Ralf Lemster
Germany
Local time: 02:55
Native speaker of: German
PRO pts in category: 183
Grading comment
Hi Ralf, take a look at the addions! Interesting case.

Peer comments on this answer (and responses from the answerer)
agree  Steffen Walter: including your comment
4 mins
agree  Astrid Cruse: zum Sinn siehe meinen kurz nach Dir eingestellten Eintrag...
7 mins
agree  Ron Stelter
38 days
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The asker has declined this answer
Comment: Hi Ralf, take a look at the addions! Interesting case.

35 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
Removal of the provision for possible taxes


Explanation:
I am agreeing with what you thought but maybe it means that it would lead to losses for the person/authority imposing the taxes.

Robin Salmon (X)
Australia
Local time: 10:55
Native speaker of: English
Login to enter a peer comment (or grade)

35 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
reversal of deferred taxes


Explanation:
latente Steuern gibt es auch auf der Aktivseite der Bilanz (für Steuergutschriften). Hier ist es ein Abgrenzungsposten und keine Rückstellung

--------------------------------------------------
Note added at 2002-10-24 14:16:16 (GMT)
--------------------------------------------------

Beispiel: This reversal of deferred taxes was netted against certain other tax provisions to provide a net reduction in the provisions for taxes of $926,000 for the second quarter.

website: http://www.draxis.com/Company/Press_Releases/1996/0729q2.htm...

--------------------------------------------------
Note added at 2002-10-24 14:53:43 (GMT)
--------------------------------------------------

oh yes, thank you TonyTK! my agree to Ralf\'s suggestion was too fast. In my opinion they are talking about tax assets (didn\'t really see the liabilties...)

Astrid Cruse
Local time: 02:55
Works in field
Native speaker of: German
PRO pts in category: 31
Grading comment
Thanks to all of you.
This was a difficult one. I finally used "reversal of activated deferred taxes", which seems to make sense of the loss that is being created. Unfortunately the author was not very helpful in his formulations.

Peer comments on this answer (and responses from the answerer)
agree  gangels (X): latent taxes are "dissolved" to become actual taxes
11 mins
  -> Da bin ich mir nicht sicher. Wenn Abgrenzungsposten für STeuergutschriften aufgelöst werden, führt dies dazu, dass der Gewinn belastet wird. Es hat m.E. nichts mit der Realisierung latenter Steuerverbindlichkeiten zu tun.
agree  TonyTK: No expert - but isn't it then "reversal of deferred tax assets"
26 mins
  -> same thing...
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