Fixed valuation

from Wikipedia, the free encyclopedia

In accounting, a fixed valuation is understood to be a permissible valuation of property, plant and equipment and raw materials , consumables and supplies if their size, value and composition are subject to only minor fluctuations and their total value is of secondary importance for the company .

General

This legal definition of Section 240 (3) HGB means a deviation from the otherwise applicable principle of individual valuation, which provides for the valuation of each individual asset (Section 240 (1) and Section 252 (1) sentence 3 HGB). If this principle were always to be applied, a disproportionately high amount of work would result in the case of a large number of objects, especially when taking an inventory . A fixed valuation is then the approach of a constant value based on constant quantities and constant prices (fixed value) for certain assets.

Procedure

For this reason, the legislator has approved so-called assessment simplification procedures, which are used for objects in large numbers. The objects intended for a fixed valuation (e.g. a totality of entire stocks ) are counted, measured or weighed once and then valued at the value ( acquisition or production costs ) assigned to them according to general principles . The resulting sum is the fixed value.

However, the fixed evaluation does not apply for all time. An inventory must be carried out on every third balance sheet date . If this inventory reveals a deviation from the previously reported fixed value, the fixed value must be updated to the higher value as the new fixed value if the current value is higher than 10%. If the value falls, an adjustment is to be made for current assets due to the strict lower-of-cost-or-market principle , for fixed assets only in the event of a likely permanent decrease in value. Subordination exists when the total value of companies included in the hard evaluation assets 10% of the average for the last five reporting dates , total assets did not exceed. The fixed valuation is also recognized for tax purposes in Section R 5.4 Paragraphs 3 and 4, H 6.8 Income Tax Guidelines (EStR).

A fixed assessment is permitted if

  • the inventory of economic goods is subject to only minor fluctuations in terms of size, value and composition and
  • the total value is of secondary importance to the company and
  • the raw materials and supplies are regularly replaced.

There are no tax regulations for the fixed valuation, which means that the values ​​in the commercial balance sheet also apply to the tax balance sheet based on the principle of relevance .

For tax purposes, no value adjustments are possible in the case of temporary impairments; in the case of permanent impairments, pursuant to Section 6 (1) No. 2, sentence 2 of the Income Tax Act, there is an option to depreciate the partial value.

Examples of fixed values

  • Hotel and restaurant sector: cutlery, crockery and linen
  • Painting or roofing companies: scaffolding parts (exception: scaffolding contractors, as these assets are not subordinated in their balance sheet )
  • Construction company: formwork parts
  • Brewery: bottles and cases
  • Small appliances of various kinds
  • Molds, rollers, models
  • Tool inventories of fixed assets

literature

  • Eberhard Rick, Thomas Gierschmann, Gerhard Gunsenheimer, Josef Schneider, Thomas Kremer: Textbook income tax. 19th revised and updated edition. NWB, Herne 2013, ISBN 978-3-482-53549-9 .

Individual evidence

  1. ↑ Heinz Kußmaul, Business Taxation , 2010, p. 69.
  2. ↑ Heinz Kußmaul, Business Taxation , 2010, p. 73
  3. ↑ Wolfram Scheffler, Taxation of Companies II , 2014, p. 178.
  4. ↑ R 5.4 paras. 3 and 4, H 6.8 EStR