160 goods in stock:
Operating supplies) is usually managed not through one, but through three accounts :
1. The three-part merchandise account
410 Sales revenues: Profit and loss statement
a) 160 goods in stock
During the year, incoming goods are booked to account “160 Inventory”.
Sales are to be recorded via the revenue account “410 Sales revenue”:
to determine the cost prices (more on this below) and to make a corresponding booking
2 cash registers / 410 sales revenue
Ongoing booking possible) is the cost of goods sold (sold goods valued at
Input tax (251 FA-Input tax) is required.
to be performed. This entry records the withdrawals from the inventory account and
contrasted:
b) 410 Sales revenue
530 Cost of goods sold: Profit and loss statement
at the same time an expense (cost of goods sold) is added to the sales revenue for the interim year.
The purchase and sale of merchandise (but also raw materials, supplies and
c) 530 Trade goods input
In addition, accounts are set up for recording sales tax (351 FA-Sales Tax) and the
Closing accounts at year-end:
SBK
160 goods in stock / 2 bank
530 Trading goods used / 160 Inventory
At the end of the year (with appropriate organization of the inventory accounting, a
Zehetner, Accounting 180
VII. Selected areas of accounting and financial
reporting
Machine Translated by Google
Zehetner, Accounting 181
Target final inventory
The indirect method starts with the initial inventory (+ purchases - returned goods)
Purchase prices (cost price).
2. Determination of the cost of goods sold
+ Acquisitions (ZK)
- Actual ending inventory according to physical inventory
2.1.1. Indirect Method
Beginning inventory (CI)
- Withdrawals
- Actual ending inventory according to physical inventory
The direct method requires inventory records. Here
Ending inventory as per physical count deducted. Result: the quantity considered to have been written down.
Withdrawals are subtracted from the initial inventory (plus purchases - returned goods). Result:
Shrinkage
The cost of goods sold refers to the quantity sold, valued at the
The quantity component of the cost of goods sold can be determined directly or indirectly.
Target ending inventory. If this is higher than the actual ending inventory according to the physical inventory count, then there is a shrinkage.
2.1. Quantity component
+ Acquisitions (ZK)
Beginning inventory (CI)
- Returned goods (RW)
Any potential loss can therefore be determined using the direct method.
"a quantity deemed to be written"
2.1.2. Direct Method
- Returned goods (RW)
Machine Translated by Google
Zehetner, Accounting 182
Updatebe
recorded when
The accounting records must comply with the requirements. The informative value of the inventory compiled in this manner must be sufficient.
1. The entrepreneur determines their inventory based on a physical inventory or on
The back-calculation procedure ensures that the balance existing at the end of the financial year is correct.
or
Assets do not need to be included in the inventory at the end of a financial year.
has recorded value in a special inventory that was valid for one day within the last three
to record and state their value, i.e. to create an inventory (§ 191 para. 1 and 2).
The entrepreneur has at the beginning of his business and at the end of each
During the inventory, the stock of assets may be determined by type, quantity, and value.
is,
can (§ 192 para. 2 UGB).
No physical presence is required for the inventory at the end of a financial year.
Samples will be taken. The procedure must comply with the principles of proper procedure.
For the financial year, accurately assess the assets and liabilities dedicated to that year.
2.1.3. Inventory
corresponding
The assets are usually inventoried by means of a physical inventory.
to be recorded (§ 192 para. 1 UGB). Exceptions:
proper
Value can be determined even without a physical inventory for this point in time.
also using recognized mathematical-statistical methods based on
Reason for an alternative procedure permissible under Section 192 Paragraph 2 of the Austrian Commercial Code (UGB) with regard to type, quantity and
prepared months before or the first two months after the end of the financial year
can (§ 192 para. 3 UGB).
The inventory of assets at this point in time must be properly valued.
2. on the basis of the special inventory by applying a principle
UGB).
one other that complies with the principles of proper accounting
Inventory of assets at this point in time, insofar as by application
The procedure ensures that the inventory of assets is accurate in terms of type, quantity and
accounting
Machine Translated by Google
Zehetner, Accounting 183
evaluated. If the entrepreneur keeps inventory records and can therefore determine the target value...
The inventory is used to determine the actual stock of assets and
the informative value of a report based on a physical inventory
equivalent to inventories (§ 192 para. 4 UGB).
Calculating the ending inventory (direct method) can be done by comparing the target inventory to the target inventory.
The final inventory is compared to the actual final inventory to determine the shrinkage .
Machine Translated by Google
Zehetner, Accounting 184
as of the balance sheet date (e.g., December 31st)
1) PHYSICAL ASSESSMENT
INVENTORY
§ 191 f UGB
SIMPLIFICATION § 192
para. 2 - 4 UGB
a) FORWARD/BACK INVOICE
2) EVALUATION
b) SAMPLING PROCEDURES
recognized mathematical-statistical methods
3/2 months
Machine Translated by Google
Zehetner, Accounting 185
The valuation is most accurate when each sold item is exactly matched to its
to be determined. A number of (simplification) methods are available for this purpose.
2.2. Valuation of the quantity sold and the
inventory - consumption sequence method
The quantity sold must be valued. Therefore, the relevant acquisition cost must be determined.
The purchase price can be assessed (identity pricing method). For this, a precise
Inventory management is required that allows each sold item to be assigned to a specific category.
2.2.1. Identity pricing procedure
However, certain simplification procedures may also be applied (§ 209 para. 2).
(See also Section 209 Paragraph 1 of the Austrian Commercial Code: Valuation at a constant value)
UGB):
To be assigned to the procurement process.
Machine Translated by Google
Zehetner, Accounting 186
1000
The weighted average price method calculates an average price from the
dar.
Determine the HWE using the weighted average price method.
à100 pieces,
200
pieces,
80
pieces, 400 pieces
A small grocery store offers small bottles of tequila in a bulk bin.
6040
Value
4876.20
Date
1.1. AB according to inventory
13.3. 1600
Date
1.1. AB according to inventory
13.3.
10
7.74
2.2.2. Weighted Average Price Method
2400
(Sales price €15). The cost of goods sold is to be determined at the end of the year. There are...
The opening inventory (OI) and purchases are known. Accurate inventory accounting is required.
1. Acquisition
15.5.
8
2nd acquisition
3rd acquisition1.10.
Not recorded. The inventory at the end of the year shows a final stock of 150 bottles.
3. Purchase
Total Actual
Opening
Balance HWE 630
(will be). The cost of goods sold is 4876.20 (630 * 7.74).
The initial inventory and all acquisitions are determined. This represents the simplest form of valuation.
6
630 (780 - 150) bottles are considered to have been removed (shrinkage cannot be determined here).
100
pieces 200 80 400 780 150
1st purchase
2nd purchase15.5.
1.10.
à
10
8
13 6 7.74
13
1040
Machine Translated by Google
Zehetner, Accounting 187
AB according to
inventory 1. Purchase
Average price calculated.
2.2.3. Moving average price method
In the moving average price method, a new price is calculated after each purchase.
1. Average price 1st
entry 2. Entry
2. Purchase 2.
Average
price 3. Entry Target
ending inventory
Accounting [1996/98], 23/I/4).
2) Depreciation: (UV: strict lower of cost or market principle)
1. 1. AB 6.
2. 1. Purchase 8. 6.
2. Purchase
8,000.00
300 pieces at €250 each
260
- 35
- 200
300
48,400.00
Damage claim:
à 200
220
3) Total loss: (Shrinkage + Depreciation)
742.37 + 2696.96 =
56,400.00
2. Calculation method:
- 43,384.00
Journal entries. The ending inventory according to the physical count is 72 units. The price on the balance sheet
date is €210 per unit (based on Blaich/ Weilinger/ Zehetner, exercise book for...).
220 pieces at €220 each
40,220
pieces
216.92
216.92
216.92
250
18. 4. 1. Draft 35 pieces
80423.80
72 pieces * (247.46 - 210) = 2,696.96
1. Calculation method:
18559.34
using the moving average price method, and create the necessary
Cost of goods sold:
2. 8. 3. Copying 250 pieces
3 pieces * 247.46 = 742.37
Determine the cost of goods sold, the ending inventory, and any potential losses.
56,400 : 260 = 216.92
1) Shrinkage: 75 pieces (target balance) - 72 pieces (actual balance) = 3 pieces
To calculate average prices:
325
- 250
75
247.46
247.46
247.46
Value
- 7592.20
75,000.00
- 61864.46
7,592.20 + 43,384 + 61,864.46 = 112,840.66
7. 5. 2. Draft 200 pieces
3,439.34
40 pieces at €200 each
Machine Translated by Google
2) Shrinkage:
2,809.34
116,280.00
531 claims
112,840.66
3,439.34
1) Devaluation: 75 pieces * (247.46 - 210)
3) Total damage:
3 pieces * 210 =
2,809.50 + 630.00 =
=
3,439.34
31. 12. 530 Merchandise usage
Booking entries:
160 merchandise stock
630.00
Zehetner, Accounting 188
Machine Translated by Google
The entity preparing the financial statements is generally not free to choose its valuation method. It has
(in - first out) assumes that the newest goods are sold first (see § 209 para. 2).
1040
Tequila example: Determine the cost of goods sold using the FIFO method.
à
10
8
13
6
1600
à
6
13
8
are not recognized for tax purposes. The LOFO method is also considered under commercial law as
to choose the procedure that most closely approximates a "truest possible picture of the assetsThe
oldest goods are sold first. In contrast, the LIFO (last in, first out) method...
The FIFO (first in – first out) method assumes that the items purchased first, i.e.
400 pieces,
80
pieces,
150 pieces, 630 pieces 4640
1000
Other art valuation methods (HIFO: highest in - first out; LOFO: lowest in - first out)
considered inadmissible because it violates the precautionary principle.
1040
5140
2400
to represent actual operational investigations. This must be made credible.366
Tequila example: Determine the cost of goods sold using the LIFO method.
1200
In contrast, the following procedures are referred to as art valuation procedures.
2.2.4. FIFO and LIFO methods
The aforementioned methods are also known as real valuation methods.
Value
(UGB). FIFO and LIFO are only recognized for tax purposes if they are an approximation method for
2.2.5. Choice of assessment method
100 pieces,
200
pieces,
80
pieces,
250 pieces, 630 pieces
Value
1500
Zehetner, Accounting 189
366 See, for example, Essl, The tax permissibility of the LIFO method and further aspects, SWK 2001/9 p. 306.
Machine Translated by Google
To explain in the appendix.
(Financial) and earnings situation” (§ 195 and § 222 para. 2 UGB).367 It is therefore the most accurate
Order within the real valuation procedures:
for
2. Moving average price method (if based on the recording of withdrawals)
Furthermore, tax law restrictions must be observed. The real valuation methods
(Identity pricing method, moving average and weighted average pricing method) are used
similar
Are there economic reasons or special circumstances that justify a change of method?
(Prohibition of arbitrariness). Therefore, a different one cannot be arbitrarily chosen from year to year.
pointed out. Accordingly,
3. Weighted average price method
comply with the principles of proper accounting (§ 209 para. 2 UGB).
The requirements are rarely met. The LIFO method is also rarely recognized for tax purposes.
Think about how you manage your yogurts in your refrigerator! Which
to maintain assets, liabilities and provisions, unless
generally considered permissible under tax law.368 The art valuation procedures are
Evaluation principles
Tax-deductible only if it is an approximation method to the actual cost
What would be the closest approach to this storage management method for art valuation?
At this point, we should reiterate the principle of material balance sheet continuity.
The FIFO and LIFO methods are permissible under company law if they comply with the
1. Identity pricing method (if possible due to appropriate inventory records)
The procedure to be chosen (argument: "the most faithful possible representation"). Therefore, the following admissibility criteria apply:
the
[“drafts”] possible)
orient yourself - not recognized for tax purposes.369 However, they would also be subject to company law.
not based on the actual consumption sequence, but on the level of the purchase prices
Deployment determination. Consequently, the HIFO and LOFO methods – since they are
Evaluation procedures must be chosen. An exceptionally permissible change of method is allowed in the
Zehetner, Accounting 190
369 See Bertl/ Deutsch/ Hirschler, Accounting and Financial Reporting Handbook (1997) 273.
367 See Bertl/ Deutsch/ Hirschler, Accounting and Financial Reporting Handbook (1997) 273.
368 See Bertl/ Deutsch/ Hirschler, Accounting and Financial Reporting Handbook (1997) 273.
Machine Translated by Google
Zehetner, Accounting 191
Which art valuation method would you recommend – assuming rising prices?
Different results can be achieved by choosing a different evaluation method.
(Inflation) – which option do you want to choose if you want to report the lowest possible profit?
Machine Translated by Google
192Zehetner, Accounting
36,600
[1996/98], 9/I/2).
On October 24th we will sell and on October 27th we will deliver goods worth €190,000,-- plus 20% VAT.
171,000
VAT: 34,200 + 2,400 = 36,600
Cash payment less discount:
171,000 * Reduction in merchandise revenue
600
171,000
12,000
1,830
- 10% discount
219,600
3. Purchase and sale – including discount and cash discount booking
205,200
Side calculation:
31.10. 270 Cash 410
Sales revenue 490
Transport revenue 351
VAT 200 Receivables from
goods and services
Net list price
0.05 = 8,550
12,000 * 0.05 = 600 Reduction of transport revenue
219,600
208,620
190,000
A 5% discount is offered for payments made within 8 days. The buyer pays the outstanding amount (less the discount of...).
Cash discount) on October 31st. Make the corresponding entries for the seller and the buyer. (Based on Blaich/
Weilinger/ Zehetner, Accounting Exercise Book)
34,200
Gross price
36,600 * 0.05 = 1,830 Reduction of VAT liability
14,400 : 1.2 = 12,000 VAT: 2,400
19,000
27.10.200 Receivables from deliveries and services 410 Sales
revenue 490 Transport
revenue 351 VAT
8,550
We charge €14,400 for transport costs (including 20% VAT). Upon conclusion of the
219,600 * 0.95 = 208,620 Amount to be transferred
Note: The discount is only granted on the purchase price of the goods.
For business transactions, we grant an immediate discount of 10% on the purchase price, and upon payment
= Net price
Sale and delivery of goods:
+ VAT 20%
Salesperson:
Machine Translated by Google
(Incoming freight) is recorded. It could also be posted to a separate discount revenue account.
to cancel. In this scenario, the (unused) discount is therefore not activated.
27. 10. 160 Merchandise inventory 100
Purchase settlement 251 Tax
office input tax 330
Liabilities from deliveries or services
Note: Inbound freight charges increase the purchase price of the goods. They are therefore included in the price.
The expense account “8 Unused discounts” should be posted. If the discount is taken at the
If the payment is used up, the expense entry is reversed by a counter-entry.
270 cash register 208,620
Post to a separate account “100 Payment Settlement” (done here). This account
31. 10. 330 Liabilities arising from delivery or service
Blaich/ Weilinger/ Zehetner, Exercise book on accounting [1996/98], 13/ I/ 3):
8,550
Note: The discount was recorded as a reduction of the sales revenue and the transport revenue. It could also be
recorded in an adjustment account ("4 Discount Expense").
171,000
(5. Discount income) should be booked. The input tax must also be reduced.
Note: The discount was used here as a reduction in the merchandise inventory (and the
36,600
Purchase and delivery of the purchased goods:
The VAT liability must also be reduced.
1,830
Buyer:
160 merchandise stock
12,000
It can be deducted when the invoice is booked and allocated to a
219,600
The balance will then be offset against the merchandise inventory account at the end of the financial year.
100 Reference settlement 600
but are viewed as financing costs.
Payment less the discount:
251 FA-Input tax
to book to account “160 Merchandise Inventory”. However, they can also be booked to the
Note: A discount can be recorded in various ways on the buyer's side (see below).
Completed. This increases the significance of the findings.
219,600
1) Unused discount as financing expense:
193Zehetner, Accounting
Machine Translated by Google
100 Reference settlement
2) Used discount as "returned goods":
A corresponding correction entry is made. If the discount is not used,
Only a price reduction is granted. In both cases, a
Price reduction, regardless of the title for which it is made. It plays
3) Utilized discount as revenue:
The entire invoice amount will be activated. If the discount is used upon payment,
unchanged. This so-called “practitioner method” is certainly applicable when acquiring
If a price reduction is offered, this option will be chosen.
Closing of the preliminary account "Withdrawal clearing":
11,400
12,000 - 600 = 11,400
A "return goods booking" has been made. If one simply considers the discount as
It is included in the purchase price. "Returned goods" refers to any subsequent modification or replacement.
The entire invoice amount will be activated. If the discount is taken,
31. 12. 160 Merchandise stock
From an accounting perspective, it makes no difference whether the goods are actually returned or
(for the formation of IFB through the Budget Accompanying Act 2001, Federal Law Gazette I 2000/142).
In any case, a proportional reduction of the input tax must be made.
This would result in a basis (the latter concern rendered moot by the elimination of the possibility).
Fixed assets are inadmissible, as otherwise excessive depreciation (and IFB) would result.
11,400
A discount is granted ("5 discounts"). The acquisition cost remains unchanged.
194Zehetner, Accounting
Machine Translated by Google
(635,000 - 5,000) : 9 = 70,000 Annual depreciation
35,000
127,000
to carry out a half-year depreciation (§ 7 para. 2 EStG).
Sold and delivered on June 17, 2025. The purchase price is finally transferred on September 18th.
Delivery of the production plant (2021):
Standard useful life 9 years, scrap value €5,000. Due to technical reasons
720,000 : 1.2 = 600,000 VAT: 120,000
Note: Since the production machine was put into operation in the second half of the year (July 2nd), only
31. 12. 701 scheduled depreciation
30. 6. 040 Production machinery 251 FAInput
tax 360 Liabilities
from plant purchase
The purchase price included €10,000 for transport and €25,000 each for installation.
Due to the upgrades, the plant will be prematurely commissioned on June 6, 2025, for €250,000 plus 20% VAT.
635,000
70,000 : 2 = 35,000
35,000
Bank transfer.
31. 12. 701 Scheduled depreciation 040
Production machinery
4. Entries relating to fixed assets
These services will be charged plus 20% VAT. These services were also provided by the
120,000 + 2,000 + 5,000 = 127,000 Input tax
Note: Since no further information on the depreciation method is given, both direct and indirect depreciation are
shown here:
600,000 + 10,000 + 25,000 = 635,000 Acquisition costs (net)
Payment of the total invoice will be made later.
and the production plant, which went into operation on July 2nd, is being depreciated using the straight-line method. In addition to the
4.1. Acquisition, depreciation and disposal of fixed assets
A product purchased on June 2nd, 2021 for €720,000 (including 20% VAT) and delivered on June 30th, 2021
762,000
The delivery company was taken over and invoiced at the same time as the purchase price.
Depreciation 2021 (indirect):
The entries for the acquisition and disposal years are required. (See Blaich/ Weilinger/ Zehetner, Übungsbuch zur
Rechnungslegung (1996/98), 27/I/1).
Depreciation 2021 (direct):
35,000
Half-year depreciation
195Zehetner, Accounting
Machine Translated by Google
196Zehetner, Accounting
355,000
35,000
8/15 355 FA payload 280 Bank
300,000
30. 6. 351 FA-Sales Tax
Incurrence of VAT liability:
355 FA payment burden
50,000
Note: Since the production machine is disposed of in the first half of the year, only half-year depreciation is to be
carried out (Section 7 Paragraph 2 of the Income Tax Act).
Residual book value
previous depreciation
June 17, 230 Receivables from plant sale 460 Proceeds
from plant sale 351 Tax office - Sales
tax
31. 12. 701 Scheduled depreciation 040
Production machinery
300,000
Due date of the VAT liability:
300,000
35,000
Note: Depreciation and book value allocation could also be carried out immediately after delivery. In practice, however,
this is often only done during the year-end closing process.
35,000
635,000 - 280,000 = 355,000
50,000
50,000
For the sake of completeness, the VAT entries are also listed here:
September 18, 280
Bank 230 Receivables from asset sale
040 Manufacturing machines
250,000
31.12.782 Book value of disposed assets
094 accumulated depreciation on 040 machines
Sales and delivery (2025):
Payment:
50,000
35,000 (2021) + 70,000 (2022) + 70,000 (2023) + 70,000 (2024) + 35,000 (2025) = 280,000
Depreciation 2025 (direct):
50,000
Discard residual book value:
355,000
Machine Translated by Google
Passenger cars must be depreciated over at least 8 years (§ 8 para. 6 no. 1 EStG).
The company law is aligned with tax law regulations. The company law orientation towards tax law regulations.
The account name "AfA" is used because, in case of doubt, one would automatically look for a different account – to avoid a multi-year review.
The term "AfA" (depreciation allowance) is a term from tax law (§ 7 EStG). In corporate law
Regulations are of course only permissible if they do not impose an obligation to represent the situation as faithfully as possible.
As a rule, depreciation is also calculated linearly under company law (see Section 7 Paragraph 1 of the German Income Tax Act: uniform depreciation).
Depreciation can therefore also be calculated in decreasing annual amounts based on a fixed base.
The respective book value (remaining book value) is applied, resulting in the respective annual amount. This does not apply, for example, to...
A maximum percentage of 30% will be applied (degressive depreciation). This percentage is based on the
Distribution over the normal useful life).
The term "planned depreciation" is used . In practice, however, the term "planned depreciation" is also frequently used.
The company's financial position, financial position and earnings (§§ 195, 222 UGB) and the principle of prudence dictate otherwise.
Since the Economic Stimulus Act 2020 (KonStG 2020), Federal Law Gazette I 2020/96, Section 7 Paragraph 1a of the Income Tax Act (EStG) applies (for tax purposes from [date]).
Buildings, company assets, motor vehicles (with the exception of electric cars, used business assets).
(assets acquired or manufactured on or after June 30, 2020) also have the option of declining-balance depreciation.
197Zehetner, Accounting
Depreciation 2025 (indirect):
Reclassification of indirect depreciation and disposal of the book value:
35,000
30% of €24,010 = €7,203 (remaining book value €16,807)
355,000
30% of €100,000 = €30,000 (remaining book value €70,000)
etc
280,000
35,00031. 12. 701 scheduled depreciation 094
accumulated depreciation on 040 machines
Note: The amounts of the depreciation carried out so far can be found in the valuation allowance account
“094 accumulated depreciation for 040 machines”: 2 * 35,000 + 3 * 70,000 = 280,000.
30% of €49,000 = €14,700 (remaining book value €34,300)
31. 12. 094 accumulated depreciation on 040 machines 782 book
value of disposed assets 040 production
machinery 635,000
30% of €34,300 = €10,290 (remaining book value €24,010)
Example calculation for declining balance depreciation: Acquisition costs: 100,000; Useful life: 8
years; Book value after useful life: 0:
Year 1
Year
Year
Year
Year Year Year 5
30% of €70,000 = €21,000 (remaining book value €49,000)
Machine Translated by Google
4.2. Low-value assets
According to § 13 EStG, the acquisition or production costs of depreciable
Low-value assets can therefore be written off immediately. Alternatively,
However, they can also be capitalized and depreciated over their useful life. Capital assets,
exceed (low-value assets).
Purpose or form a unit according to common understanding .
This also applies to profit determination according to § 4 para. 3 EStG (income-expense statement)
explicit provision: 371 Acquisition or production costs of low-value assets
Transfers are determined (§ 13 last sentence EStG).
The materiality threshold can be written off immediately.372 Only in the case of a distortion of the true and fair
View would require activation.
The option of immediate depreciation does not apply to assets that are used for consideration.
Items consisting of parts are to be considered as a unit if, according to their economic purpose, they
Fixed asset € 1000370 (net; except in cases of a fictitious VAT exemption) not
Fixed assets can be deducted as operating expenses if these costs are for the individual
The amount can be fully deducted in the year it is spent.
This regulation, although a tax law provision, has already been applied in corporate law. The 2014
Corporate Law Amendment Act (RÄG 2014) further expanded this application.
Depreciable fixed assets may be fully depreciated in the year of their acquisition or production (§
204 para. 1a UGB as amended by the Accounting Amendment Act 2014). Under company law, they may
now even be fully depreciated if the
198Zehetner, Accounting
372 ErlRV RÄG 2014 GP XXV RV 367, 7; Dokalik/ Hirschler, RÄG 2014 - Reform of Accounting Law (2015) 41.
371 See previously § 205 UGB (repealed by RÄG 2014).
Under the old legal framework (until the Accounting Amendment Act 2014), full depreciation of low-value assets of
significant value (over 10% of the scheduled depreciation of the fixed assets) required separate disclosure under
the untaxed reserves in the valuation reserve (§ 205 UGB; repealed by the Accounting Amendment Act 2014).373
370 idF Tax Reform 2022 (for fiscal years beginning after 31.12.2022); until 31.12.2019 € 800; before that € 400;
before that S 5000.
373 See in detail Bertl/ Deutsch/ Hirschler, Buchhaltungs- und Bilanzierungshandbuch5 (2007) 405 ff.
Machine Translated by Google
(Half-year depreciation)
Activation of the low-value asset:
Low-value assets are initially capitalized and then repurposed in the same year.
Booking:
Planned depreciation (direct):
31. 12. 050 Operating and business equipment
0 accumulated depreciation of low-value assets 1000
0 Low-value assets
Assets + 251 VAT input tax to 280 Bank" booked. See as for the
1,500
Depreciation of low-value assets:
75
Assets
Activation and reversal of depreciation:
2 FA-Input tax
75
On September 13th, an office meeting set (usage period: 10 years) was purchased and more
6 * 200 + 300 = 1,500
200
1000
were each recorded with the journal entries "706 Depreciation of low-value assets"
Accounting Manager on December 31st: Is action required? (Based on Blaich/ Weilinger/ Zehetner,
Exercise Book on Accounting (1996/98), 31/I/1).
(Full year depreciation)
1000
0 Low-value assets
7 Depreciation of low-value assets 0 accumulated depreciation
of low-value assets
1000
1000
1,500 ÷ 10 = 150
150 ÷ 2 = 75
1,500
31. 12. 701 Scheduled depreciation 050
Operating and business equipment
Fully written off or (to simplify matters in practice) immediately booked in full as an expense:
Note: The office conference set is to be considered a single economic unit. The individual components
cannot therefore be treated as low-value assets/ assets.
2 Bank 1200
Delivered and set up in the office on the same day. The 6 chairs cost €200 each, plus 20% VAT.
The table, costing €300 plus 20% VAT, was invoiced on 7 separate invoices and paid by us via 7 bank
transfers. The 7 assets
706 Depreciation of low-value assets
Rebooking:
Zehetner, Accounting 199
Machine Translated by Google
Any alternatives?
4.3. Activation prohibitions
Vaxina AG developed a new vaccine in its company during the final year.
Research and development expenses, self-created patents and similar
They are subject to a prohibition on activation (§ 197 para. 2 UGB). This includes, for example, own
Therefore, in the present case, there must be no activation of the research and
tasked with the correct accounting entry. (Based on Blaich/ Weilinger/ Zehetner, Exercise Book on
Accounting (1996/98), 30/I/3a).
against hay fever. According to internal company calculations, the following were determined for the
The depreciation (§ 13 EStG) can be written off immediately. Therefore, the depreciation must
be reversed. The set must be capitalized and depreciated over its useful life.
What problems does this regulation cause? What course of action do you propose as a [position]?
Booked for material usage (affecting profit).
Two employees propose on December 31st that these research costs be capitalized. They will
necessary trials: €18,700,000 for personnel expenses and €1,300,000.
Since self-created intangible assets are difficult to value
Market-valued intangible assets of fixed assets may
be activated.
Intellectual property rights (e.g., copyrights) are affected. Only those acquired for a fee (and therefore
Development expenditures will be incurred.
200Zehetner, Accounting
Machine Translated by Google
(updated acquisition costs). Acquisition costs are the expenses that
Depreciation) is applied (result: updated production costs). Through the
Sections 2-4 of the Austrian Commercial Code (UGB) are referenced.
Acquisition costs + incidental acquisition costs + subsequent acquisition costs to
apply reductions in acquisition costs and to reduce depreciation (result:
an asset value is compared, thus ensuring (largely) neutrality of the outcome.
5.2. Manufacturing costs
The manufacturing process is complete. Manufacturing costs are the expenses incurred for the
to put the asset into an operational state, insofar as they are individually related to the asset
Production of an asset, its expansion, or for a purpose beyond its original scope
5.1. Acquisition costs
For fixed assets , see § 203; for current assets , see § 206, which also refers to § 203.
5. Acquisition and production costs
Significant improvements beyond the original condition will occur. See Section 203, Paragraph 1.
Self-produced assets are valued at their production costs (minus
Acquired assets are valued at their acquisition costs (purchase price:
payments made to acquire an asset and convert it into a
can be allocated. The acquisition costs also include incidental costs as well as...
See Section 203 Paragraphs 1 and 2 as well as Section 206 of the Austrian Commercial Code (UGB).
The activation of production costs is added to the production expenses already recorded.
Subsequent acquisition costs. Purchase price reductions must be deducted.
1 and 3 as well as § 206 UGB.
201Zehetner, Accounting
The EU-GesRÄG 1996 (Federal Law Gazette 1996/304) redefined the scope of manufacturing costs (§ 203 paras. 3 and 4, §
206 para. 2 Austrian Commercial Code): When calculating manufacturing costs, at least the direct costs (note: this is a cashbased
cost concept!), i.e., direct material costs, direct labor costs, and special manufacturing costs, had to be included
(minimum allowance). In addition, reasonable portions of material overhead and manufacturing overhead could also be
included. Furthermore, certain social security contributions and attributable interest on borrowed capital could be included
(maximum allowance). General administrative and sales overhead costs were generally not permitted. Only in the case of
long-term contracts whose execution extends over more than twelve months, were reasonable parts of the administrative and
sales costs allowed to be included, provided that a reliable cost accounting system is available and that no losses are imminent
from the further processing of the contract (§ 206 para. 3 UGB).
Machine Translated by Google
Occupational pension schemes and severance payments may be included (§ 203 para. 3).
As before, the following applies: If overhead costs are excessive due to obvious underemployment, then
Losses are imminent. The application of this provision must be indicated in the annex and...
The introduction of this right to vote by the EU-GesRÄG 1996 was amended by the RÄG 2014.
be taken into account.
Expenditures for company social facilities, for voluntary social benefits, for
Only those parts of these costs corresponding to an average level of employment may be included.
UGB).
justify and their influence on the company's assets, financial position and earnings
Paragraph 3, last sentence) to ensure that the most accurate possible picture of the assets, finances and
The earnings situation cannot be conveyed even with additional notes to the financial statements (§ 222 para. 2),
Prohibition of including costs of general administration and distribution (§ 203)
(see in more detail Section 203 Paragraph 4 of the Austrian Commercial Code (UGB), also regarding required notes to the appendix).
Directive 2013/34/EU is not included; therefore, the legislator has decided to retain it.
For orders whose execution extends over more than twelve months,
to be explained; at the same time, the total amount allocated in excess of the production costs must be stated (§ 206 para.
3 UGB as amended by the Accounting Amendment Act 2014). Background: This right of election is contained in the Directive
Whether used for fixed or current assets, they may be used within the framework of the
Reversed: Now, reasonable portions of overhead costs must also be included to the extent that they
relate to the production period. (Act 2014)
can design it as a true and fair view override (see Article 4(4) of the Directive).
Thus, a closer alignment with tax law was achieved.
reliable cost accounting is available and insofar as no further costs arise from the further processing of the order.
Manufacturing costs are to be included insofar as they relate to the manufacturing period.
Manufacturing costs are included (§ 203 para. 3 lit. S UGB). In exceptional cases, this leads to
Appropriate portions of administrative and sales costs should be allocated if a
Interest on borrowed capital used to finance the production of goods
General administrative and sales costs must not be included in the
202Zehetner, Accounting
Machine Translated by Google
For tax purposes, a reconciliation (MWR) must be carried out. For tax purposes, this is done via the tax office.
The scope of the manufacturing costs thus lay between the minimum and maximum levels (as amended by
EU-GesRÄG 1996, but prior to RÄG 2014). RÄG 2014 restored consistency in this regard. How one calculated
the manufacturing costs (until RÄG 2014)
For tax purposes, appropriate portions of material overhead and manufacturing overhead must also be
included (§ 6 para. 2 lit. a EStG as amended by the Tax Amendment Act 1996). The dispute
Manufacturing costs (permissibly) deviated from the strict regulations, subsequently necessitated...
For further information on the valuation, see Section 6 of the Income Tax Act (EStG).
203Zehetner, Accounting
Machine Translated by Google
Raw materials used in the vaccine, with an acquisition value of €400,000, were used during
Manufacturing costs
(# KORE: Manufacturing costs)
EK
Continuing the last example: During the final year, it was also already
The expenses are booked as expenses as they arise during the year. Likewise, those associated with their generation.
+ Manufacturing overhead costs
Administrative overhead costs amount to 20%. Carry out the necessary (also tax-related) documentation.
Social security contributions
EK
GK: appropriate
Special manufacturing costs
minimum approach under company law
Section 203 Paragraph 4 of the Austrian Commercial Code (UGB): can
Vaccine produced. The production of this vaccine, which has not yet been released for sale, is underway.
Associated manufacturing wages amounting to €600,000. The material overhead costs
The surcharge is 50%, the manufacturing overhead surcharge is 60%.
Manufacturing costs
Section 203 Paragraph 3 of the Austrian Commercial Code (UGB) as amended by the Accounting Amendment Act 2014
+ Material overhead costs
Section 203 Paragraph 3 Sentence 4 of the Austrian Commercial Code (UGB): can
Manufacturing material
Special sales costs
Maximum interest rates
on borrowed capital under company law
Administrative overheads
Sales overheads
EK
GK: appropriate
Cost price
Zehetner, Accounting 204
Manufacturing overhead
Manufacturing costs
These costs may not be included. However, for contracts whose
fulfillment extends over more than twelve months, reasonable
portions of administrative and sales costs may be included,
but only if a true and fair view is otherwise not possible.
Section 203 Paragraph 3 Sentence 4 UGB
Special manufacturing costs
They may not be included. However, for contracts whose
fulfillment extends over more than twelve months, reasonable
portions of administrative and sales costs may be included (§ 206
para. 3 UGB).
Maximum interest rates
on borrowed capital under company law
Administrative overheads
Sales overheads
Special sales costs
See, however, Section 6 Paragraph 2 Letter a of the Income Tax Act as amended.
Tax Amendment Act 1996: str must
Manufacturing material
Section 203 Paragraph 3 of the Austrian Commercial Code (UGB) as amended by the EU-GesRÄG 1996, prior to the RÄG 2014
Manufacturing, expansion, significant improvement: activate
minimum approach under company law
Material overheads
Individual costs
Social security contributions
Section 203 Paragraph 4 UGB
can be mediated (§ 206 para 3 UGB as amended by RÄG
2014).
Cost price
Machine Translated by Google
If the reported profit in the financial year is to be as high/low as possible, you will
Special manufacturing costs 0
• Pass-through tax: usually VAT (except for non-genuine VAT exemptions)
permissible) bookings. (Based on Blaich/ Weilinger/ Zehetner, exercise book for
Manufacturing costs:
– Property tax (7 property tax / 2 bank),
Manufacturing overhead costs 60% 360,000
6. Accounting for taxes
400,000
The following types of taxes and accounting methods must be distinguished:
– Corporate income tax (8 corporate income tax / 3 residual income tax corporate income tax [Note: not a business expense: therefore MWR])
1,560,000
Note: The regulations for calculating production costs apply equally to fixed assets (§ 203 para. 1, 3 and 4 UGB) and
current assets (§ 206 para. 2 in conjunction with § 203 para. 3 and 4 UGB). However, different revenue
accounts must be used when capitalizing production costs: “4 Capitalized Own Work” (for fixed assets) and “4
Change in Inventories” (for current assets).
1,560,000
choose?
– Local tax (6 local tax / 2 bank tax),
• Tax subject to activation: Real estate transfer tax (0 Land / 2 Bank)
• Private withdrawal: Income tax of a general partner (9 private / 2 bank)
Accounting (1996/98), 30/I/3b).
It is not possible to make a general statement about how taxes should be recorded.
Manufacturing wages 600,000
Manufacturing material
Material overhead costs 50% 200,000
Capitalization of production costs:
December 31st: 160 vaccines,
450 inventory changes
• Tax burden: e.g.
the maximum approach under company law or the minimum approach under company law
= Production costs 1,560,000
205Zehetner, Accounting
Machine Translated by Google
40,000 * 0.3 = 12,000
(Based on Blaich/ Weilinger/ Zehetner, Exercise Book on Accounting [1996/98],
Note: Depreciation (30%) is calculated on the net amount.
Option 1:
12,000
On December 31st, we learned that our customer was experiencing payment difficulties. He owes us
The demand will be met.
to be assessed according to the lower of cost or market principle .
7. Receivables valuation
Receivables are part of current assets. Therefore, they must be accounted for in accordance with strict accounting principles .
If a claim proves to be uncollectible, it must be written off.
31. 12. 7 Write-off of uncollectible receivables 3 VAT 2
Receivables from
deliveries and services
30/I/4).
€48,000. The VAT rate is 20%. We expect that 70% of the
Individual valuation adjustment of the dubious claim:
7.1. Uncollectible receivables
31. 12. 781 Write-off of dubious receivables
201 dubious claims
Note: The dubious claim will be separated from the rest. The entire gross amount will be transferred.
Write-off of the uncollectible debt:
48,000
When writing off the asset, the originally recorded sales tax must also be corrected.
a) Create the journal entries for December 31st (excluding closing entries):
12,000
100,000
48,000 : 1.2 = 40,000
Rebooking the dubious claim:
120,000
20,000
7.2. Dubious demands
48,000
31. 12. 201 dubious claims 200 claims
arising from deliveries and services
Zehetner, Accounting 206
Machine Translated by Google
c) On February 13th of the following year, it turns out that 80% of the claim is collectible. The
13. 2. 270 Cash 351 VAT
781 Write-off of dubious
receivables 208 Valuation allowance for dubious
receivables 200 Trade receivables
31. 12. 781 Write-off of dubious receivables 12,000
12,000
12,000
19,200
48,000
12,000
36,000
= Bad debt 28,800 including VAT
b) On February 13th of the following year, it turns out that only 40% of the claim is collectable.
4,800
4,800
13. 2. 270 Cash 351 VAT
781 Write-off of dubious
receivables 201 dubious receivables
Note: This bad debt includes a net receivable of €24,000 and a VAT component of €4,800. Since €12,000 was
already written off in the previous year, the remaining €12,000 of the net bad debt must now be written off. The
VAT component of the bad debt is borne by the tax authorities and reduces the company's liability to the tax
office (351 VAT). Therefore, a contra entry must be made for this amount to reduce the VAT liability.
- Payment received: 19,200
19,200
12,000
The amount will be paid to us in cash on the same day.
Outstanding claim 48,000
The account “201 dubious receivables” still contains 36,000,-- (48,000 - 12,000 = 36,000) after the value
adjustment of 12,000 in the previous year.
Receipt of the claim (ad 1st possibility):
The amount will be paid to us in cash on the same day.
208 Allowance for doubtful accounts
Option 2:
Individual valuation adjustment of the doubtful receivable - indirect accounting:
To calculate the VAT adjustment:
Receipt of the claim (ad 2nd possibility):
48,000 * 0.4 = 19,200
Zehetner, Accounting 207
Machine Translated by Google
Zehetner, Accounting 208
12,000
40,000 * (0.3 - 0.2) = 4,000 (30% were written off last year, 20% actually failed, so 10% too much was
written off)
1,600
38,400
1,600
4,000
36,000
8,000 * 0.2 = 1,600
48,000 * 0.8 = 38,400
Receipt of the claim (ad 1st possibility):
13. 2. 270 Cash 351 VAT
480 Other operating income
from receivables write-up 201 Doubtful receivables
48,000
38,400
Receipt of the claim (ad 2nd possibility):
13. 2. 270 Cash 351 VAT
480 Other operating income
from receivables write-up 208 Valuation allowance for dubious
receivables 200 Trade receivables
4,000
Machine Translated by Google
7 exchange rate
losses, 3 foreign liabilities
Valuation of foreign liabilities:
December 31st
1,180
1,180
Zehetner, Accounting 209
0.6150
Date
7.3. Foreign currency receivables
48,240
Date
9,648
Create the necessary journal entries for all three dates. (Based on
letter
48,240 * 0.2 = 9,648
currency
0.5025
An Austrian company imported goods worth Sin-$100,000 from Singapore to Austria on November 9, 2003. On
the same day, it sold and delivered goods to
Blaich/ Weilinger/ Zehetner, Exercise book on accounting [1996/98], 19/I/3).
Can-$:
48,240
Money
0.4701
0.4493 0.4536
Import of goods:
100,000 * (0.4824 - 0.4706) = 1,180 (exchange rate gain, therefore no entry). With an exchange rate
loss of this amount, we would have recorded:
letter
0.4844
currencies
EUSt:
0.4796
Bank transfer agreed. On January 16, 2004, both amounts (Sin-$ and CAN-$) will be transferred.
9. 11. 2 Import VAT 2 Cashier
Money
0.5765
0.5700 0.5610
0.6200
Sin-$:
Money
0.4608
0.4414 0.4456
currency
9. 11. 1 Merchandise inventory 3
Foreign liabilities
currencies
9,648
0.6250
Note: Since payments are usually made without cash, exchange rates must be used for conversion.
Letter
0.6046
0.6005
0.5900
Canada valued at CAN$200,000. In both cases, payment was made by means of
transferred. The exchange rates (1 unit of foreign currency per unit) are:
9.11.
31.12.
16.01.
31.12.
16.01.
100,000 * 0.4824 = 48,240
Letter
0.4824
0.4706
0.4752
9.11.
Foreign exchange bid rate
a) Import into Sin-$:
Money
0.5985
0.5900 0.5750
Machine Translated by Google
Zehetner, Accounting 210
47,520
119,700 - 1,700 = 118,000
2 Bank
2 Export receivables 7
Exchange rate losses
100,000 * 0.4752 = 47,520
Foreign receivables can be affected by both currency losses and (partial)
Transfer of the export claim:
Export of goods:
1,700
200,000 * (0.5900 – 0.5750) = 3,000
7.4. Dubious foreign claim
115,000
b) Export to CAN-$:
3,000
Canada is not an EU member. The single market regulations therefore do not apply.
Note: Exports to third countries (non-EU countries) are treated as (genuinely) VAT-exempt export deliveries. Exports
to other EU countries are subject to the so-called "single market regulation," meaning that, on the supplier's
side, these are generally (also) VAT-exempt intra-Community supplies.
9. 11. 2 Export receivables 4 Export
revenues
200,000 * (0.5985 – 0.5900) = 1,700
1,700
16. 1.
118,000
Assessment of the export claim:
2 Export demands
119,700
The debt may be at risk of becoming uncollectible.
48,240
Transfer of the liability:
16. 1. 3 Foreign liabilities 2 Bank 4 Exchange
rate gains
720
200,000 * 0.5985 = 119,700
100,000 * (0.4824 - 0.4752) = 720
200,000 * 0.5750 = 115,000
December 31st, 7 share price losses
119,700
Machine Translated by Google
Zehetner, Accounting 211
for which there is no corresponding return yet. The return will only be generated in a subsequent period.
to be shown on the liabilities side of the balance sheet (account class 3).
Expenses and revenues must be reported on an accrual basis (accrual accounting).
was caused . The time of payment is irrelevant (§ 201 para. 2 no. 5 UGB).
services are only attributable to the following year (or a later financial year), provided
Payment now – expense or revenue later!
(Account class 2).
Own advance payments are expenses that were made in the financial year, but
The expense should be carried forward economically to a later period. Therefore, the expense already recorded must be transferred to the...
Accrued expenses (ARA), which must be shown on the asset side of the balance sheet
or received and these payments have already been recorded as expenses or revenue, then
generated. The revenue already recorded must therefore be carried over to the next period.
Profit determination). The key factor here is when the expense or revenue becomes economically viable.
Third-party advance payments exist when payments have been received in the financial year.
8. Period-end closing
8.1. Advance payments (transitories: ARA, PRA)
This is done using a passive accrual (PA) item, which is based on the
Are advance payments made during the fiscal year for expenses or revenues that
8.1.1. Own advance payments (active deferred payments)
Appropriate accrual entries must be made.
to be carried over to the next period. This is done with an active
8.1.2. Third-party advance payments (passive transitories)
Machine Translated by Google
Zehetner, Accounting 212
31. 12. 9 SBK 290
ARA
Advance rent payments for 9 months (monthly rent €20,000) are due on October 1st.
December 31st at 1st.1st. They merely serve to transfer the advance payments made to the correct account.
1.1.7 Rental expenses 290
ARA
120,000
120,000
120,000
120,000
180,000
1. 1. 290 ARA 9 EBK
31. 12. 9 P&L
120,000
Accruals and deferrals are purely “transportation accounts”. They only exist on the
to transfer period.
1. 10. 7 Rent expense 251
FA input tax 2 Bank
216,000
31. 12. 290 ARA 7
Rental expenses
60,000
180,000
216,0002. 10. 2 Bank 4
Rental income
351 FA-Sales tax
31. 12. 4 Rental income 390
PRA
7 Rental expenses
a) Tenant's perspective
36,000
120,000
60,000
36,000
120,000
120,000
120,000
Provided. Make the bookings from both the tenant's and landlord's perspective.
b) Landlord's perspective
120,000
Machine Translated by Google
Zehetner, Accounting 213
8.2.1. Own residues (passive anticipations)
8.2.2. Foreign residues (active anticipations)
31. 12. 390 PRA 9
SBK
Payments will be made. If no accounting is submitted by the end of the year, the revenues and
5-7 Expenses / 360 Other liabilities
120,000
! Expenditure or revenue now - payment later !
120,000
8.2. Residues (Anticipations)
2 other receivables / 4 income from ...
120,000
1. 1. 390 PRA 4
Rental income
60,000
already known in principle and in amount.
December 31, 2014. Rental income 9 Profit
and loss statement
60,000
Expenses and the corresponding receivables and payables in the
1.1.9 EBK 390
PRA
120,000
120,000
The accounting data has not yet been recorded. This will be done during the preparation of the annual financial statements.
Unlike provisions (more on that below), this obligation
Arrears (anticipations) are the exact opposite of advance payments. Here, in the
120,000
Expenses and revenues have already been incurred in the current fiscal year . However, no [revenues/revenues ] have yet been received.
Machine Translated by Google
214Zehetner, Accounting
1. Provisions for severance payments;
C) Provisions:
8.3. Provisions
Provisions, unlike reserves, which are specifically designated parts of the
According to Section 198 Paragraph 8 of the Austrian Commercial Code (UGB), provisions for
b) impending losses from pending transactions (provisions for impending losses)
Provisions must be made in particular for
c) Goodwill gestures, unused vacation time, anniversary bonuses, reversionary liabilities and productd)
obligations based on law or regulation to take back and recycle
Provisions other than those legally required may not be made.
a) Entitlements to severance pay,
of products (§ 198 para 8 no 4 UGB).
are indeterminate with regard to their amount or the time of their occurrence. Such
2. Provisions for pensions;
3. Tax provisions;
to form (Z 1). Furthermore, they may
Equity capital is, in contrast to debt capital.
8.3.1. Overview
liability risks
4. Other provisions.
a) uncertain liabilities (Z 1) and for
c) Provisions for expenses that are precisely defined by their nature and relate to the past
Provisions must be made to the extent that this complies with the generally accepted accounting principles (Z 2).
There is no obligation to create provisions insofar as the amounts in question are not material (see Section 189a No.
10 UGB) (Section 198 Paragraph 8 No. 3 UGB as amended by the Accounting Amendment Act 2014).
attributable expenses that are likely or certain to be incurred on the balance sheet date, but
b) current pensions and pension entitlements,
Provisions must be classified in the balance sheet as follows (§ 224 para. 3 UGB)
Machine Translated by Google
215Zehetner, Accounting
discounted at the prevailing market interest rate (§ 211 para. 2 UGB as amended by the Accounting Amendment Act 2014). (Note: in the future
When establishing a provision, the settlement amount must be estimated as accurately as possible (Section 211 Paragraph 1 of the Austrian
Commercial Code (UGB) as amended by the Accounting Amendment Act 2014). Future price and cost increases must be taken into account.
2. current pensions and pension entitlements,
- Provisions for uncertain liabilities (# 1, 2)
- Provisions for expenses
(pensions or anniversary bonuses are concerned),
Provisions with a remaining term of more than one year must be treated with a
to be carried out according to actuarial principles.
significant potential for conflict with Section 9 Paragraph 5 of the Income Tax Act (see below).
4. Imminent losses from pending transactions.
Impending losses from pending transactions (Z 4) may not be calculated as a lump sum.
According to Section 9 Paragraph 1 of the German Income Tax Act (EStG), provisions can only be made for
a liability (a loss) is seriously to be expected (§ 9 para. 3 EStG).
Thus, neither expense provisions nor lump-sum provisions, which are sometimes used, are permitted.
- Provisions for impending losses
can be determined according to which, in each individual case, the presence or emergence of
be taken into account. The valuation of long-term personnel provisions has according to
3. Other uncertain liabilities (if the provisions do not include severance payments,
Provisions may only be made if specific circumstances are proven.
are permissible under company law. Different assessments according to
Corporate and tax law must be balanced via a profit and loss statement.
The tax law regarding the creation of provisions is more restrictive.
Provisions for other uncertain liabilities (item 3) and provisions for
1. Entitlements to severance pay,
Machine Translated by Google
374 See in more detail Bertl/ Hirschler, Formation and dissolution of warranty and litigation cost provisions, RWZ
2001, 356.
216Zehetner, Accounting
to be formed in accordance with Section 14 of the Income Tax Act (Section 9 Paragraph 2 of the Income Tax Act).
Provisions for the obligation to make a gift on the occasion of a company anniversary
It is to be discounted at an interest rate of 3.5%, provided the term of the provision is on
secure commitments.
On December 31st, we realize that we have to pay the canal and telephone fees for the final year.
If a service is used, a warranty and
They have not yet paid due to lack of an invoice. The sewer fee is €1,840 according to the tariff.
(Constitutional Court from 1999) – not be formed (§ 9 para. 4 EStG).
Income-expense accounting systems are only permitted to create severance pay provisions .
are uncertain . The provision must be made if there is a serious possibility of a claim being made.
The total cost is subject to 20% VAT. We estimate the telephone charges to be €2,900 net.
Arguments against it. Will an entrepreneur be penalized for allegedly deficient [qualifications]?
8.3.2. Provision for contingent liabilities
to create a provision for litigation costs.374
26/I/3)
Provisions within the meaning of sections 3 and 4 are to be recognized at their partial value . The partial value
balance sheet date is more than twelve months away (§ 9 para. 5 EStG).
may – unlike for a gift on the occasion of a service anniversary (revocation by
Severance pay and pension provisions as well as provisions for anniversary bonuses are
It is necessary to calculate the amount. A provision must be made when there are more reasons for a claim than there are actual claims.
Unlike provisions, liabilities are fixed in terms of both their existence and amount.
Uncertain liabilities are liabilities that are uncertain in amount and/or nature.
(Based on Blaich/ Weilinger/ Zehetner, Exercise Book on Accounting [1996/98],
Machine Translated by Google
Since no invoice has yet been issued for the sewer fee, the input tax cannot yet be claimed. It should therefore initially be
posted to account "252 pending input tax". Once the invoice is issued, it will be transferred to account "251 tax office input
tax" or directly to the tax liability account "355 tax office tax liability".
Since the exact amount of telephone expenses attributable to the financial year is not yet known, a provision is made.
The outstanding canal fees also represent an expense for the closing period, but their amount and existence are already
known. Therefore, no provision needs to be made. Since this is a passive anticipation (own arrears), the expense is recorded
in a liabilities account.
Any sales tax is not taken into account when creating a provision.
217Zehetner, Accounting
8.3.4. Provision for threatened losses
original purchase price value. Make any necessary bookings in the
31. 12. 720 Canal fee
To make a booking:
Payment will be made in January 2001. A worldwide [event/situation] will take place at the end of December 2000.
31. 12. 738 Telephone expenses
If these are not permissible under tax law, a positive MWR (meaningful reversal) must be applied. For example, if in
On November 28, 2000, we purchased several computers for a computer network in our
8.3.3. Provision for expenses
312 Provision for telephone charges
2,208
Provision for telephone expenses:
MWR: +10,000
Canal fee:
252 pending input tax 360 other
liabilities
Wirtschaftstreuhänder-GmbH for €200,000 (plus 20% VAT). The delivery and
368
1,840
2,900
7 Repair costs / 3 Provisions for repairs 10,000
Provisions for expenses are allocated to past expenses (e.g.
(omitted repair expenses, maintenance expenses). Since they
Price collapse in the computer market. The computers we bought are now only worth 70% of their original price.
2,900
The following repairs will be carried out next year (net cost: €10,000):
Machine Translated by Google
218Zehetner, Accounting
200,000 * 0.3 = 60,000
December 31st: 770 impending losses from pending transactions
Provision for threatened losses:
November and December 2000 (excluding closing and opening entries)! (Based on Blaich/ Weilinger/ Zehetner,
Übungsbuch zur Rechnungslegung [1996/98], 31/I/1).
Note: Since booking is only possible upon delivery, no booking will be made in November.
307 Provision for impending losses from pending
transactions
60,000
60,000
Note: See Section 198 Paragraph 8 Item 1 of the Austrian Commercial Code (UGB). Since a loss is imminent
from this pending (i.e., not yet fulfilled) transaction due to the conclusion of the contract and the subsequent
price decline, a provision must be made in the amount of the impairment.
The loss is thus recognized in the period in which it was economically incurred. This corresponds to the
principle of imparity in realization. In the next period, this provision is to be used to cover the loss. Therefore,
no loss is (presumably) to be reported in 2001.
Machine Translated by Google
(§ 229 para. 5 UGB)
Reserves are separately reported parts of equity (see balance sheet structure).
Capital reserve
Dissolution only to offset a balance sheet loss that would
otherwise have to be reported; the use of the statutory reserve
is not precluded by the fact that free reserves exist which are
designated to offset impairments and to cover other losses (§
229 para 7 UGB)376
unbound
5% of the (around the
Shareholders for
UGB)
bound
c) Co-payments from
External financing
(§ 229 para. 6 UGB)
together they form the:
Retained earnings
(Loss carryforward reduced)
(§ 229 para. 2 UGB)
statutory free
AG and large GmbH
Granting a
restricted reserve
(§ 229 para 3 UGB)
d) Amounts to be bound in the
event of a capital
reduction (§§ 185, 192 para. 5)
b) Agio, when issuing
conversion and
Section 221 paragraph 5 of the Austrian Commercial Code (UGB) as amended by the Austrian Commercial Code Amendment Act 2016 (APRÄG 2016) expressly does not refer to
Section 229 paragraphs 4-7 of the Austrian Commercial Code (UGB). Therefore, the provisions regarding the restricted reserve for registered partnerships within the meaning of
Section 189 paragraph 1 item 2 letters a and b of the Austrian Commercial Code (UGB) do not apply.
a) Premium on the issuance
of shares
other
(§ 229 para 4 UGB as amended by AktRÄG 2009)375
Annual surplus until the total
restricted reserves reach
10% (or more, see statutes) of the
Preferred
9. Reserves
Option rights
Nominal capital is reached
Additional payments
(§ 229 para. 2 no. 5
Internal financing
AktG; § 59 GmbHG)
Zehetner, Accounting 219
376 Until the AktRÄG 2009: Section 130 Paragraph 4 AktG.
375 Note on literature and case law research: Until the German Stock Corporation Act Amendment Act (AktRÄG 2009), the regulation was found in Section 130 of the German Stock Corporation Act (AktG), to which
Section 23 of the German Limited Liability Companies Act (GmbHG) refers. Section 130 of the German Stock Corporation Act now governs the appointment of special auditors.
Machine Translated by Google