Distribution measurement function

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The distribution measurement function is a function of German accounting and serves the purpose of determining profit entitlement .

The distribution measurement function in the annual financial statements

The external accounting in Germany has two main goals, the determination of profit entitlement and the transfer of information (in addition, the tax assessment is sometimes also mentioned); these objectives are (partially) met by the annual financial statements . In the German annual financial statements, the distribution measurement function has priority over the information function , which is only of a subsidiary (supporting) character.

The calculation of dividend function is primarily the profit claim determination of shareholders and should be protected by the design of the correct distribution amount, the shareholders before profit cuts; Reasons for this protection can be either contractual or legal. At this point, off-balance-sheet goals are specified by accounting law .

The dividend measurement function determines the profit that is allocated to the shareholders and is fully distributable. However, this does not mean that it is also the profit actually distributed.

In addition, the dividend measurement function ensures the protection of shareholders by preventing fictitious profits from being reported and thus ensuring that the original corporate purpose, namely the (assumed) continuation of the company, is maintained. In addition, the dividend measurement function also protects the company's creditors by preventing the disclosure of fictitious profits and ensuring the existence of a minimum capital for the company's liability purposes, which the creditors can access in the event of insolvency. Obtaining this minimum liability capital takes place in that only values are distributed to the shareholders who actually part of the profit and thus to distribute disposable are.

The distribution measurement function in the consolidated financial statements

The distribution measurement function does not play a role in the consolidated financial statements , since the determination of the profit entitlement already takes place at the individual companies of the group and not at the group level.