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effektive Steuerrückstellung
Heimfalllasten

Glossary entry

German term or phrase:

Abgrenzungsbetrag

English translation:

(here) capitalized as prepaid expenses

Added to glossary by Alison Schwitzgebel
Sep 29, 2006 05:50
17 yrs ago
2 viewers *
German term

Abgrenzungsbetrag

German to English Bus/Financial Accounting
Ergibt sich nach den steuerlichen Vorschriften im Einzelabschluss ein zu versteuernder Gewinn, der höher ist als das handelsrechtliche Ergebnis und gleicht sich der zu hohe Steueraufwand des laufenden und früheren Geschäftjahrs voraussichtlich in den folgenden Geschäftsjahren aus, so ist in Höhe der voraussichtlichen Steuerentlastung nachfolgender Geschäftsjahre der Abgrenzungsbetrag zu aktivieren.
Proposed translations (English)
4 -1 deferred tax asset
4 +3 capitalized as prepaid expenses

Proposed translations

-1
3 hrs
Selected

deferred tax asset

The amount of the anticipated tax relief of the following business years is to be capitalized as a deferred tax asset.

Prepaid expenses is aktive RAP, so I think that would be confusing here and the original text doesn't say it.

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Note added at 13 hrs (2006-09-29 19:33:47 GMT)
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Abgrenzungsbetrag would be a deferred amount, but you wouldn't say that. I have no idea what the link about tax deductible items has to do with this. It says "A prepaid expense is an expense you pay ahead of time". So it obviously is not the deferred taxes they're talking about.
Peer comment(s):
disagree RobinB : See my comment on Alison's answer. It really is a "prepaid expense", because deferred tax assets are classified as prepaid expenses under HGB accounting (German/Austrian).
42 mins
I still don't like the other answer because it still is a deferred tax asset
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4 KudoZ points awarded for this answer.
+3
1 hr

capitalized as prepaid expenses

I think - if I've got it the right way round. It's early in the morning and I'm in a hurry to get out the door.

"A prepaid expense is an expense you pay ahead of time, such as rent or insurance. The expense is claimed at the time the benefit is received. For example, suppose your fiscal year-end is December 31, 1999. On June 30, 1999, you purchased an insurance policy for your business premise for a full year (July 1, 1999, to June 30, 2000). You can only deduct one-half of the cost as an expense for 1999. The other half is deducted in 2000. "
Reference:

http://www.mywebca.com/infolibrary/taxes/taxes2.htm

Peer comment(s):
agree RobinB : Yes, because deferred tax assets (in this case for timing differences) are - rather weirdly - classified as "aktive RAP" (prepaid expenses) in German GAAP.
1 hr
Scary!! Early in the morning, a distinct lack of caffeine, in a hurry, and yet - lo and behold - my brain was indeed functioning. Well I never :-)
agree seehand : bin mir allerdings nicht sicher, ob nicht beides "expenses prepaid" und "receivables deferred" aufgeführt werden müssen
3 hrs
agree Ted Wozniak
5 hrs
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