Niederstwertprinzip

English translation: at the lower of cost or market

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:zum Niederstwertprinzip
English translation:at the lower of cost or market
Entered by: conny

12:29 Feb 6, 2003
German to English translations [PRO]
Bus/Financial - Accounting / Balance sheet
German term or phrase: Niederstwertprinzip
aus Jahresabschluß einer GmbH: "Die Vermögensgegenstände des übrigen Umlaufvermögens werden unter Berücksichtigung aller erkennbaren Risiken und unter Beachtung des Niederstwertprinzips
bewertet."
I found for N.:, "lower of cost or market" ...
conny
Germany
Local time: 19:28
assets ... are valued at the lower of cost or market
Explanation:
Your assumption is spot on.

Steffen :-)

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Note added at 2003-02-06 12:35:28 (GMT)
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Taking account of any potential risk, other working capital [current assets] is [are] valued [recognised] at the lower of cost or market.

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Note added at 2003-02-06 12:38:05 (GMT)
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other alternatives:

- are valued in accordance with the lower of-cost-or-market principle
- are valued at cost or market whichever is lower
Selected response from:

Steffen Walter
Germany
Local time: 19:28
Grading comment
Thank you all, the discussion is always very helpful
3 KudoZ points were awarded for this answer



Summary of answers provided
5 +4assets ... are valued at the lower of cost or market
Steffen Walter
5 +2In support of Steffen's answer above
Alison Schwitzgebel
4lowest value principle
Katy62
4principle of conservatism
foehnerk (X)
4my take
gangels (X)
3minimal valuation
Ellen Zittinger


Discussion entries: 1





  

Answers


2 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
lowest value principle


Explanation:
my proposal

Katy62
Local time: 19:28
Native speaker of: Native in GermanGerman, Native in EnglishEnglish
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2 mins   confidence: Answerer confidence 5/5 peer agreement (net): +4
assets ... are valued at the lower of cost or market


Explanation:
Your assumption is spot on.

Steffen :-)

--------------------------------------------------
Note added at 2003-02-06 12:35:28 (GMT)
--------------------------------------------------

Taking account of any potential risk, other working capital [current assets] is [are] valued [recognised] at the lower of cost or market.

--------------------------------------------------
Note added at 2003-02-06 12:38:05 (GMT)
--------------------------------------------------

other alternatives:

- are valued in accordance with the lower of-cost-or-market principle
- are valued at cost or market whichever is lower


Steffen Walter
Germany
Local time: 19:28
Specializes in field
Native speaker of: Native in GermanGerman
PRO pts in category: 444
Grading comment
Thank you all, the discussion is always very helpful

Peer comments on this answer (and responses from the answerer)
agree  Alison Schwitzgebel: with "assets are valued at the lower of cost or market" but not with the other suggestions. It's standard accounting wording time again folks! ;.)
13 mins
  -> Might this be a UK vs US thing?

agree  Ralf Lemster: in conjunction with Alison's remarks
1 hr
  -> Thanks :-)

agree  Ron Stelter
1 hr
  -> Thanks Ron :-)

agree  Astrid Cruse
2 hrs
  -> Danke, Astrid
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40 mins   confidence: Answerer confidence 5/5 peer agreement (net): +2
In support of Steffen's answer above


Explanation:
"assets are valued at the lower of cost or market" is absolutely standard accounting phraseology - irrespective of what side of the pond you are on.

"The valuation of assets owned by a non-farm business usually follows Generally Accepted Accounting Practices (GAAP). Capital assets are generally valued at cost less accumulated depreciation while inventories and some other *assets are valued at the lower of cost or market*.1 This results in a conservative estimate of retained earnings and of owner equity in total." (From Oklahoma State University accounting lecture material)

and

"Current asset investments
Current asset investments are stated at the lower of cost or market value"
From Associated British Foods


    Reference: http://www.agweb.okstate.edu/pearl/agecon/resource/wf-938.ht...
    Reference: http://www.abf.co.uk/financial_prior/2002/acc_policies.html
Alison Schwitzgebel
France
Local time: 19:28
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 346

Peer comments on this answer (and responses from the answerer)
agree  Steffen Walter: Thank you for giving the examples. Viele Grüße ;-))
45 mins

agree  Ted Wozniak
10 hrs
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
principle of conservatism


Explanation:
This is the GAAP principle (1 of 11) that is being referred to, is it not?

foehnerk (X)
Local time: 14:28
Native speaker of: English
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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
minimal valuation


Explanation:
minimal asset valuation

or based on the principle of lowest value designation

Ellen Zittinger
Local time: 11:28
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 3
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4 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
my take


Explanation:
are valued (appraised) at the lower end of replacement cost


Niederstwert implies replacement cost rather than market valuation, with all its subjective discount or premium intangibles

gangels (X)
Local time: 12:28
Works in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 122
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