YTread Logo
YTread Logo

Vorsichtsprinzip an einem Beispiel erklärt – Bewertungsgrundsätze Rechnungswesen

May 09, 2020
In the jungle there is a rule of caution. There could be a poisonous snake or spider waiting around every corner. Big cats and Ninja Turtles are also very feared. Now we are not talking so much about the dangers in the jungle camp, but rather about a precautionary principle, which is important for us, the friends of well-kept accounting. Well, you also have to be careful in accounting. But here you don't have to be afraid of the Ninja Turtles and company. The objective of the prudence principle is to maintain accounting worthy of a prudent businessman. The principle of prudence aims not to embellish the capital of a company and thus protect creditors and the continuity of the company.
vorsichtsprinzip an einem beispiel erkl rt bewertungsgrunds tze rechnungswesen
The principle is a principle of proper accounting. Article 252 of the Commercial Code deals with valuation principles. Paragraph 1 No. 4 says here: “It must be carefully assessed, in particular taking into account all foreseeable risks and losses that have arisen up to the date of the report, even if these only became known between the date of the report and the day on which that was reported. The annual financial statements have been prepared." This means that you must carefully evaluate and take into account the foreseeable risks and losses during the period in which the annual financial statements are prepared. In this context, you must write and remember the principle of fairness with #lossanticipation in your cheat sheet.
vorsichtsprinzip an einem beispiel erkl rt bewertungsgrunds tze rechnungswesen

More Interesting Facts About,

vorsichtsprinzip an einem beispiel erkl rt bewertungsgrunds tze rechnungswesen...

Because this concretizes our precautionary principle. Here's an example: the balance sheet date is approaching and at Tom's hardware store there are positions in which the outcome of the event is not yet clear or there is no information about a confident determination. In these cases, where uncertainty creates room for evaluation, you cannot simply evaluate how you feel about it. Here you have to anticipate the risks and possible losses. The hardware store still has pending claims against a customer. To His craft company in Ziel had ordered new equipment, such as drills, hammers and saws, worth 5,000 euros, but now he cannot pay, the company's finances are in bad shape.
vorsichtsprinzip an einem beispiel erkl rt bewertungsgrunds tze rechnungswesen
Most likely, the hardware store can no longer count on paying the bill. Even if a potential insolvency proceeding does not expire until next year, the company's losses must be recognized. Loss anticipation is the magic word. The unrealized loss is shown in the annual financial statements. Therefore, the true businessman tends to think that he is poorer than he is. This prevents the company from reporting too high profits. This serves to protect creditors. So much for the risks and losses. When it comes to winning, things look different. Although it concerns only unrealized losses and risks, for profits the HGB stipulates the following: "Profits shall only be taken into account if they have been realized on the balance sheet date." At this point Spicker adds the “principle of realization.” Earnings must be realized to be recognized.
vorsichtsprinzip an einem beispiel erkl rt bewertungsgrunds tze rechnungswesen
A success must first be achieved through sales before it can be reported. The realization principle also requires that losses can only be recognized once sales have been made. However, the issue here is that the impartiality principle limits the realization principle with respect to foreseeable losses and risks. As we have learned, losses and risks should also not materialize if they are foreseeable. Companies should not present themselves better than they really are. For this reason, the HGB stipulates that profits may only be included in the balance sheet if they are earned before the reporting date. #PrincipleofRealization An example of this.
The hardware store reached an agreement in December. A landscaper orders wood, stones and plants to spruce up a park. However, the goods will not be delivered to the landscaper until the new year, after the balance sheet date, and will then be paid for by him. The profit the hardware store makes on this transaction is not included in the current annual financial statement period because the goods are delivered after the balance sheet date. Therefore, the benefit can only be recognized in the next transaction. Conversely, if the merchandise had been shipped here before December 31, then the hardware store could record the profit.
So much for the principle of proper accounting called the principle of prudence. We observe that under the umbrella of the principle of prudence we have two more principles that make everything more concrete. On the one hand, there is the realization principle, which guarantees that benefits can only be recognized in the annual financial statements if they are realized on the reporting date. And on the other hand, we have the principle of impartiality, which says that as a good businessman you must anticipate losses and risks. Since the imparity principle somewhat corrects the realization principle and ensures that unrealized gains and losses are treated differently.
Therefore, the real businessman is more likely to consider himself too poor on the books than too rich.

If you have any copyright issue, please Contact