Balance sheet identity

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In accounting, the balance sheet identity is understood to be the accounting principle in accordance with Section 252 (1) No. 1 of the German Commercial Code ( HGB) , which prescribes that the values ​​for the company's fixed and current assets in the opening balance sheet must not deviate from those in the closing balance sheet of the previous year.

This double-edged balance sheet is intended to prevent companies from reporting incorrect profits.

A breach of the balance sheet identity is only permitted in justified exceptional cases, Section 252 (2) HGB.