Revaluation reserve
Revaluation reserve (or revaluation reserve ; English revaluation reserve , fair value reserve ) is in accounting , a liability item in the balance sheet , of the equity belongs. It is provided for in an EU directive that has been allowed to be transposed into national law since June 2013, but has not yet been implemented in Germany .
history
The revaluation reserve was created as a "revaluation reserve" by an accounting standard of the International Accounting Standards in February 1977 and was adopted in August 1980 in IAS 16.31 . He stipulated that the fixed assets of companies under the revaluation model at each balance sheet date should be evaluated so that the carrying amount of the asset does not differ materially from its fair value (, market value English fair value ) is different. It was therefore true:
If a revaluation leads to an increase in the book value, the increase in value is to be posted directly to equity under the balance sheet item “Revaluation reserve” (IAS 16.39). This revaluation reserve was initially rejected by the Federal Ministry of Finance , BaFin and the Bundesbank because it meant a relaxation of the strict lowest value principle . The German banking industry in particular feared serious competitive disadvantages from non-recognition.
The 4th EC Balance Sheet Directive of July 1978 took over the revaluation reserve in Art. 33 Para. 1a and provided for a distribution block for it (Art. 33 Para. 2c), but conversion to revenue reserves was permitted (Art. 33 Para. 2b) . While these regulations have been transformed into national law in all EU member states , Germany has not taken them into account in commercial law . This directive was repealed by Directive 2013/34 / EU (Balance Sheet Directive) in June 2013. According to Article 7 (1), this new directive also enables the EU member states to enact national regulations allowing all companies to value fixed assets at revaluation amounts, whereby the difference between the valuation at acquisition or production costs and the valuation is based Revaluation basis is to be added to the revaluation reserve in the balance sheet under "Equity". A distribution block continues to apply (Art. 7 Para. 2).
As these regulations on revaluation are still missing in the Commercial Code (HGB), the use of revaluation reserves is only possible for companies that act as securities issuers on an organized capital market . According to the IAS regulation of July 2002, they are obliged to apply the International Accounting Standards (IAS; now: IFRS = International Financial Reporting Standards ) in their consolidated financial statements since 2005 . To this end, Section 315a of the HGB regulates which HGB provisions are to be applied accordingly for these companies. According to the IAS regulation, the acquisition cost model or the revaluation model must be selected. If the revaluation model is selected, the increase in value from the increase in the book value is to be posted directly to equity under the item "revaluation reserve" with no effect on income (IAS 16.39 for property , plant and equipment , IAS 38.85 for intangible assets ). This makes part of the hidden reserves visible, but not distributed.
Credit institutions
Equity is a very scarce financing instrument at credit institutions , especially since the credit volume in the lending business or the qualification as a large loan are made dependent on the amount . In the case of credit institutions, the question therefore arose as to whether and to what extent these revaluation reserves would find regulatory recognition as liable equity capital . From January 1996 onwards, they were issued in accordance with Section 10 (4a) No. 4 KWG a. F. as "unrealized reserves" for land , land rights and buildings , bonds , shares and investments ( financial assets ) as supplementary capital. The prerequisite was that Common Equity Tier 1 capital was at least 4.4% of the sum multiplied by 12.5 from the risk positions and the capital charge for operational risk . In addition, only 45% of the difference between the book value and the lending value for land, land rights and buildings and 35% of the difference between book value and market value for listed securities were recognized as supplementary capital.
With the revaluation reserve, banks were given an accounting policy instrument to add hidden reserves gained through revaluation of tangible and financial assets to their own funds. This resulted in an improvement in the core capital ratio , which increased the scope for expanding risk positions in the lending business. The provision of Section 10 (4a) of the KWG was omitted in September 2013 due to the Capital Adequacy Directive in accordance with Article 1 No. 21 of the CRD IV Implementation Act. The Capital Adequacy Ordinance (CRR), which has replaced the KWG since January 2014 for the definition of own funds, does not provide for the revaluation reserve as a component of own funds in either core capital or supplementary capital. Transitional provisions regulate the degressive reduction in the remaining revaluation reserves up to the year 2022.
Individual evidence
- ↑ Brunhilde Häberle / Markus Guthoff (eds.), Areas of application of regulatory policy in the social market economy , 1992, p. 56
- ↑ Directive 78/660 / EEC of July 25, 1978, ABl. 222/11
- ↑ Elke Büsselmann, banking supervision and market-related equity , 1993, p. 140
- ↑ from June 26, 2013, OJ. L 182/19
- ↑ Regulation (EC) No. 1606/2002 of July 19, 2002 on international accounting standards, ABl. EG No. L 243 p. 1
