Gross principle
The gross principle is a principle of accounting , according to which in annual financial statements and public budgets corresponding values such as receivables / liabilities or income / expenses must be shown in full and separately from one another.
General
The gross principle realizes the completeness principle ( balance sheet truth ) of § 264 HGB and the balance sheet clarity as well as the budget principles (budget truth and budget clarity) in the preparation of the budget planning and in the budget execution. This is intended to provide the outside reader of the annual financial statements or households with a complete picture of the asset , financial and earnings position. The gross principle from Section 152 (8) AktG a. F. (AktG of September 1965) has been adopted as a prohibition of offsetting for all legal forms in the HGB.
Legal issues
The gross principle is implemented operationally by applying the offsetting ban . According to Section 246 (2) HGB, balance sheet items on the assets side may not be offset against items on the liabilities side and expenses may not be offset against income . In the case of households, § 15 BHO ( gross estimate ) and § 35 BHO ( gross statement ) as well as § 12 HGrG ( gross estimate ) represent comparable regulations will be charged with the same high level of expenditure by a quoting and booking omitted. In addition, expected income may not be offset against the intended expenditure for the same purpose ( offsetting prohibition ).
application
All annual financial statements (including quarterly reports , interim reports ) and budgets are subject to the gross principle. In the case of households, the federal regulation of the BHO and the HGrG also applies analogously in the state budget regulations (LHO) for the states and municipalities. In addition, the gross principle applies to all other budget-managing bodies (e.g. municipal companies ).
Exceptions
There are only a few exceptions to the gross principle. Individual value adjustments may be deducted from the dubious receivables at credit institutions ( Section 340f (1) HGB). In addition, § 340c HGB creates a set-off option for credit institutions for income from write-ups and expenses from write-downs both in the trading book ( § 340c (1) HGB; mandatory offsetting) and in the banking book ( § 340c (2) HGB; offsetting option). All companies are allowed to offset deferred tax liabilities against assets ( Section 274 (1) HGB).
See also
Web links
Beck’s balance sheet commentary
Individual evidence
- ^ Herbert Wiesner / Bodo Leibinger / Reinhard Müller, Public Finance , 2008, p. 141
- ↑ Wolfgang Hilke, Accounting according to commercial and tax law , Part 1, 1991, p. 57
- ^ Herbert Wiesner / Bodo Leibinger / Reinhard Müller, Public Finance , 2008, p. 141
- ↑ Reinhold Adrian / Thomas Heidorn (eds.), Der Bankbetrieb , 2000, p. 732
