Glossary entry (derived from question below)
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 | Michael Rose |
4 +3 | capitalized as prepaid expenses | Alison Schwitzgebel |
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.
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.
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. "
"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. "
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
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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 :-)
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agree |
seehand
: bin mir allerdings nicht sicher, ob nicht beides "expenses prepaid" und "receivables deferred" aufgeführt werden müssen
3 hrs
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agree |
Ted Wozniak
5 hrs
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