Abschreibungen auf Tochtergesellschaften

09:20 Mar 14, 2011 

This answer is addressed to Robin B.
Unless we know how the subsidiary ('Tochtergesellschaft') is carried in the books by the company wanting the translation of 'Abschreibung' we'll never know for certain whether it actually is a Depreciation / Impairment of Loss/es / Depreciation / Write Down / Write Off.
IF we assume it's a loss on value of real estate = impairment, depreciation
IF a profit loss = impairment, write down.
IF the subsidiary was closed = write off.
IF goodwill was lost (UK, no longer in USA) = amortisation.
IF loan/s financing subsidiaries = amortisation.
IF company borrowed against the real estate / goodwill (BrE)/ economic performance value of subsidiary = amortisation, write down.

Hence 'amortisation' - it covered more balance sheet scenarios. The Asker then had more information and chose the (AmE) term for 'Abschreibung' for 'profit / performance loss'.

Please RobinB, be very careful with your mighty DISAGREEs here on proz.com. Appreciate your time and effort though.

17:33 Mar 10, 2011 

I will check the forums now, as I shouldve probably done before posting last comment!

17:32 Mar 10, 2011 

I probably shouldnt be asking this here, but would any of you be able to recommend a simple, straightforward guide/dictionary/glossary that explains financial terms (both DE-EN, and EN-EN) for us laymen and women out here? I do NOT translate financial texts but some terms come up even within general business texts. I've never heard of write-down and if I'd found it while researching a term wouldve thought it was not a professional fachbegriff, even when you do find back up in financial dictionaries its hard to know whats used in practice. Impairment losses for example is double dutch to me! Many thanks!

21:29 Mar 6, 2011 

This entry is actually addressed to Amanda A.

Assets are depreciated if they are depreciable, i.e. if they have "finite useful lives". The term "depreciation" is customarily used for items of property, plant and equipment (PPE), referred to in German GAAP as "tangible fixed assets". The term "amortisation" is customarily used for intangible assets. Although intangible assets include goodwill, goodwill is not regarded under e.g. International Financial Reporting Standards (IFRSs) as having a finite useful life - it has an "indefinite useful life" and cannot be amortised. It may only be written down if its carrying amount is impaired.

Investments in subsidiaries are neither items of PPE nor intangible assets. They are financial assets, and (like goodwill) don't have a finite useful life. Financial assets are not amortised (or depreciated), ever. Instead, they are written down if their current/fair value is lower than their carrying amount (book value). Under IFRSs, these write-downs are called "impairment losses", but under German GAAP, they're mainly referred to as "write-downs".

That's why your answer is materially incorrect, and that's why I'm not going to change my disagree.