|of these articles treats the balance in the account system. For to Swiss the restaurant magazine see balance (magazine).|
The balance (ital. bilancia, balance, in the sense of beam balance; lat. bilanx, about double balance) is a list of origin and use of the capitala restaurant subject - in the following mostly on the basis an enterprise describes. The balance is the confrontation of fortunes and capital with the goal of determining own capital funds as remainder size.
Table of contents
the balance is a component of the end-of-year procedure of an enterprise, themrepresents together with the profit and loss calculation the economic success of a participant of the economics in a view of past (usually the financial year run off in the end-of-year procedure or to another deadline). A balance is provided in principle on a defined time,while the profit and loss calculation for a defined period are provided. The time for the production of the balance is called balance-sheet date.
The evaluation of an enterprise due to its balance is called statement analysis and is an element of the fundamental analysis.
The balance is to fulfill the following functions in dominant opinion:
- Documentation function: The balance gives an obligatory information over the existing fortune of the enterprise. By holding the fortune in the balance this becomes a proof-strong document over ofEnterprise of transacted business. The balance represents thus the formal conclusion of the bookkeeping.
- Profit accounting function: A further function of the balance exists in the determination of the period gain. The comparison of own capital funds at the beginning of the financial year with at the end of the financial yearresults in with consideration of the inserts and withdrawals the profit or loss of one period. Coming off the profit/loss in detail proven over those the own capital funds account pre-aged profit and loss calculation (GuV).
- Information function: This can divided into self-information and the third informationbecome. A goal that the balance course-thought self-information is it to give to the buyer this way an instrument for the controlling of the enterprise. For interested third (creditor, market partner, employee, state) the balance provides an information instrument concerning its future behavior opposite thatEnterprise. The balance serves the Gläubigerschutz from this view in the broader sense.
Source: Bertl R., German E. & Hirschler K. (2001). Bookkeeping and balance manual. 3. and edition revised. Vienna: Orac publishing house.
kinds of balance
- current balances: Balancesusually at least for the end of each financial year are provided, for example on the 31.12. a yearly. Quoted enterprises are obligated also to the publication of trial balances on the end of each quarter.
- Special balances: Beside that regularly to providing balances it givesalso extraordinary balances, which are meaningful at different times legally prescribed or as decision basis: For this count in particular the establishment balance and the Liquidationsbilanz as well as for example a Fusionsbilanz.
- For most enterprises it is legally prescribed, both a commercial balance sheet andto provide also a tax balance. From the terms already it follows that there can be differences between the two balances regarding beginning and evaluation. The commercial balance sheet is to represent thereby actual conditions of the enterprise relevant for the groups of interests. Purpose thatTax balance is an applicable success determination for the yield taxation in the context of the income tax, body-expensively and trade tax, in addition, the illustration of the enterprise ability for purposes that inheritance-expensively, formerly also the wealth tax.
- In dependence of the number of the balancing enterprisesone differentiates between the single balance, the component of the end-of-year procedure is, and (consolidated) the company balance, the part of the company conclusion is and in that for example by fortune and debt consolidation determined company internal mutual obligations be eliminated.
- The buyer has tooBeginning of its trade the relationship of its fortune and its debts representing opening balance to set up (§ 242 exp. 1 HGB).
structure of the balance
the balance is divided represented into two ranges:
- The side of the active places the utilization of funds: Active shows, the enterprise with it the available the economical means acquired which requirements. These requirements know funds (e.g. Cash, bank accounts), means of production (e.g. Real estates, machines), raw materials, Vorprodukte and similar material goods its. Besides is a set ofto specify immaterial goods - these are not always directly financially measurably (see below, “current problem definitions with the balance”), it give however often good reference points for an estimation.
- The side of liabilities represents the central origin: Liabilities show, like the meansare financed, with which the enterprise keeps house. Between outside capital and own capital funds one differentiates in particular. Own capital funds cover the means, which the enterprise can have unrestrictedly, i.e. in particular the brought in master and capital stock as well as from the enterprise gained And profits accumulated capital reserves. The outside capital covers means, which are made available of third (temporally limited), for example Hypotheken, loans, loans and credits granted by suppliers.
The active is usually pointed out on the left side of the balance, liabilities upthe right side. On both sides the same sum of all positions must result, the balance sheet total.
balance arrangement after § 266 HGB
in accordance with § 266 HGB is developed as follows a balance set up after the German commercial code:
|Assets side||Passive side|
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suffers the enterprise a so high loss that own capital funds become computationally negative, then the “negative amount” as “deficit” not covered by own capital funds on active or passive side is proven.
balance arrangement after IAS
After internationally Accounting standards/IFRS set up balance differs in its structure from a balance after German HGB. The structure of a IAS balance is regulated in IAS 1, Paragrafen 51-77 (“balance Sheet”), whereby IAS 1,51 thereby the enterprisestwo fundamental possibilities for the balance arrangement grants:
- An arrangement after Fristigkeit (on the assets side: current assets and non current assets and corresponding on the passive side: current liabilities and non current liabilities) as rule and
- an arrangement of assets and liabilities in each case after theirLiquidity proximity as exceptional case.
A clear default, whether this arrangement has to take place in more ascending or in descending order, does not exist thereby. However that präferiert accounting interpretation Committee (RIC) German accounting of the standard Committee registered association. (DRSC) in RIC 1 (accounting interpretationNo. 1 “balance arrangement after Fristigkeit in accordance with IAS 1 representation of the conclusion “) as guideline for the balance of German enterprises after IFRS obviously the sequence on a long-term basis - at short notice (see. Appendix to RIC 1: Example of a balance classification scheme).
In the tax law the entrepreneurial success is determined by operating fortune comparison (§ 4 EStG). In the balance own capital funds correspond to the operating ability. Private inserts of the entrepreneur do not contribute however to success, just as private withdrawals do not reduce success.
Success profit thus own capital funds
- at the end of one financial year are
- less own capital funds at the beginning of one financial year
- less private inserts in the course of the financial year
- increased around private withdrawals
principles of the balance
basis with the production of a balance are the regular bookkeeping (detail seethere). The balance is to draw a fair, applicable and comprehensible picture of the enterprise to the deadline. This is called principle of the balance truth and principle of the balance clarity. Additionally the caution principle, inaccurately numberable existence applies should rather pessimistically estimated and possible risksif necessary to be considered. These standards are regulated in the principles of regular bookkeeping (GoB).
Who has to set up a balance, is regulated in the commercial code. There also the legally prescribed structure is to be found.
Into the balance all facts must includedbecome, which admits to the time of the balance and is relevant for the period between two balance-sheet dates. It is not sufficient to take up an account balance available to the respective deadline to the balance. Additionally referred must, but still in the period the balance-sheet date agonot paid achievements to be evaluated. It must be determined likewise, which payments were already made for an achievement, which is referred only in the following year - for example a pre-payment for raw material supplies.
A difficulty the production from balances is therefore,that at one time rarely all are numberable facts which can be considered already. Like that it is for example well-known that an enterprise will receive a phone bill for the month Decembers. Since also the use of this achievement already took place in December, those must entitled demand of the offerer into the balance flow. The appropriate calculation is however only present possibly at the end of January of the subsequent year. Thus it is practically impossible to provide a balance both precisely and time near. Accordingly offense with large enterprises mostlytwo to four months up to the publication of the tidy balance. On the other hand straight with börsenkotierten enterprises one is expected time near balance, so that - and this tendency is intensified in the last years increasingly - often debited to the accuracy oneas fast a balance as possible is provided, in which many values could become only estimated.
The moreover the comprehensive representation of the financial picture demands an actual stocktaking at the time of the balance production. For existing goods this takes place mostly in form of a stocktaking,into possible differences between the seized camp changes and the actually existing existence to be held can.
Finally the evaluation of tangible assets of an enterprise takes place. Here must for the means used in production (e.g. Machines) as well as for the long-term financial assets(e.g. Real estates and enterprise participation) realistic values to be determined. This can be made by writings-off, so that the value of a firm vehicle over the planned use of eight years is lowered evenly in each year around an eighth of the purchase price. Another beginningis the determination of the theoretical selling price, which is appropriate for investments into publicly acted values (shares of other enterprises) in particular. Here for example the shares in the possession of the enterprise can be evaluated for the course of the last commercial daily the balance-sheet date ago.
For the protection of the creditors of an enterprise the so-called applies during the evaluation of net assets.Caution principle, which its concrete application in FF. Evaluation principles finds:
- To acquisition value principle
- minimum value principle and
- maximum value principle
- imparity principle
see the major item balance theory
- classical balance theories
- thosestatic balance theory
- the dynamic balance theory
- the organic balance theory
- newer beginnings
- preservation of real assets and principal
- economic profit
current problem definitions with the balance
at the latest since the beginning of the information age shows up that the value of immaterial active for the evaluationan enterprise an increasing meaning to attain can. So extraordinary knowledge (to “enterprise knowledge”, see knowledge management) can furnish one only in the future in financial success convertible market advantage. Likewise successfully introduced marks are considered as valuable property, help them nevertheless with the creation ofCustomer confidence and customer connection (see.Brand loyalty).
The difficulty the presentation of a realistic economical representation lies however to award to these quite relevant immaterial goods an appropriate value speaks z. B. to determine the mark value. There in the future from these goodsarising yield is not realisistisch foreseeable, might enterprise a spreading structure for this representation still some years take time.
Particularly with service enterprise the business success and thus the value of the enterprise can depend possibly on active, itself relating to the balanceso far not at all to seize leave - to the coworkers with their abilities and knowledge. The coworkers follow on basis of the work contracts of their activity closed with them for the well-being of the enterprise. They - and not machines - produce services andthus conversion with customers. They decide by means of the quality of their achievement on success or failure of an enterprise. An example are the so-called. 'Investmentbanken ', whose business success depends to substantial parts of the customer contacts and knowledge of the coworkers.Due to an existing confidence basis between customers and an individual coworker, the enterprise does not receive orders - or evenly. The management economics did not succeed so far yet in the sufficient measure, generally accepted evaluation rules for the economical factor of production “work” regardingto formulate the activation from human work to.
In addition it comes that provision width unit immaterial fixed assets may not be set such as software or patents after German and Austrian commercial code in the balance (after IFRS already, if fulfills the criteria stated in IAS 38become). So a software enterprise in its balance may state the computers, with which the programmers work, as well as the armchair, on which they sit, not however the resulting programs, even if they bring still so much conversion.
At times thatExaggerations that new Economy led acquisitions of enterprises to the large goodwill (Goodwill), an intangible asset, in the balance of the buying enterprise. This shows that yields which can be obtained apparently in the future were overestimated clearly in relation to the current values of the substance of the enterprise.Being missing yields led to the largest losses, which ever proved enterprises, since this led to the fact that those of Goodwills had to be copied. This was to be seen strongest to that with AOL, which had to copy the Goodwill, with the acquisition ofTime Warner had developed.
End-of-year procedures (consisting of balance, profit and loss calculation as well as appendix) of finance companies must be published with the registry office and be attested - with exceeding of certain value borders - by a chartered accoutant.
the European system that Economical Gesamtrechnung (ESVG) plans in the VGR statements of assets and liabilities , with which the active (fortune goods and demands) with liabilities (commitments) is balanced to net assets.
Financial statements of assets and liabilities balance the gross financial resources, the demands, with the commitments to the net financial resources.
- Bea, Dichtl, Swiss: General one BWL. Bd 2: Guidance, 8. Aufl., 2001, S. 429-624
- Baetge, Jörg; Kirsch, Hans Jürgen; Thiele, Stefan; Balances, 7. Edition, Duesseldorf 2003; ISBN 3-802-11086-2
- Baetge, Jörg; Kirsch, Hans Jürgen; Thiele, Stefan; Company balances, 6.Edition, Duesseldorf 2004;ISBN 3-802-11154-0
- Coenenberg, Adolf: End-of-year procedure and end-of-year procedure analysis, 17. Aufl. 2004; ISBN 3-791-02185-0
- Dellmann, Klaus: Bases of the international balance. A short introduction .2003; ISBN 3-7255-4549-9
- sign brook, Thomas: The according to commercial law end-of-year procedure, 7. Edition, 2004
- W. Eisele: Technologythe operational account system. 7. Edition, 2002
- Günter Wöhe: Introduction to the general management economics, 21. Aufl. 2002, S. 1074-1082; ” ISBN
- 3-406-51487-1 Michael Griga, Arthur Kosiol, Raymund Krauleidis read
- ISBN 3-800-62865-1 Eberhard Scheffler, “balances correctly: Controlling for Dummies, chapter7: “The Showdown: The balance ", 1. Edition. Wiley VCH, Weinheim 2005, ISBN 3-527-70153-2
- Memento publishing house, balance right for practice 2005/2006, 1. Edition, Freiburg 2005, ISBN 3-933790-69-7
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