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German: Abgrenzungsbetrag

English translation: (here) capitalized as prepaid expenses







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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Abgrenzungsbetrag
English translation:(here) capitalized as prepaid expenses
Entered by:Alison Riddell
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5:50am Sep 29, 2006Login or register (free) for more options.
German to English translations [PRO]
Bus/Financial - Accounting
German term or phrase: Abgrenzungsbetrag
Ergibt sich nach den steuerlichen Vorschriften im Einzelabschluss ein zu versteuernder Gewinn, der höher ist als das handelsrechtliche Ergebnis und gleicht sich der zu hohe Steueraufwand des laufenden und früheren Geschäftjahrs voraussichtlich in den folgenden Geschäftsjahren aus, so ist in Höhe der voraussichtlichen Steuerentlastung nachfolgender Geschäftsjahre der Abgrenzungsbetrag zu aktivieren.
martina1974
Austria
deferred tax asset
Explanation:
The amount of the anticipated tax relief of the following business years is to be capitalized as a deferred tax asset.

Prepaid expenses is aktive RAP, so I think that would be confusing here and the original text doesn't say it.

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Note added at 13 hrs (2006-09-29 19:33:47 GMT)
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Abgrenzungsbetrag would be a deferred amount, but you wouldn't say that. I have no idea what the link about tax deductible items has to do with this. It says "A prepaid expense is an expense you pay ahead of time". So it obviously is not the deferred taxes they're talking about.
Selected response from:

Michael Rose
Germany
Note from asker to answerer
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3capitalized as prepaid expenses
Alison Riddell
4 -1deferred tax assetMichael Rose


  

Answers

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
capitalized as prepaid expenses

Explanation:
I think - if I've got it the right way round. It's early in the morning and I'm in a hurry to get out the door.

"A prepaid expense is an expense you pay ahead of time, such as rent or insurance. The expense is claimed at the time the benefit is received. For example, suppose your fiscal year-end is December 31, 1999. On June 30, 1999, you purchased an insurance policy for your business premise for a full year (July 1, 1999, to June 30, 2000). You can only deduct one-half of the cost as an expense for 1999. The other half is deducted in 2000. "


    Reference: http://www.mywebca.com/infolibrary/taxes/taxes2.htm
Alison Riddell
Germany
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 286

Peer comments on this answer (and responses from the answerer)
agree RobinB: Yes, because deferred tax assets (in this case for timing differences) are - rather weirdly - classified as "aktive RAP" (prepaid expenses) in German GAAP.
1 hr
  -> Scary!! Early in the morning, a distinct lack of caffeine, in a hurry, and yet - lo and behold - my brain was indeed functioning. Well I never :-)
agree seehand: bin mir allerdings nicht sicher, ob nicht beides "expenses prepaid" und "receivables deferred" aufgeführt werden müssen
3 hrs
agree Ted Wozniak
5 hrs
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
deferred tax asset

Explanation:
The amount of the anticipated tax relief of the following business years is to be capitalized as a deferred tax asset.

Prepaid expenses is aktive RAP, so I think that would be confusing here and the original text doesn't say it.

--------------------------------------------------
Note added at 13 hrs (2006-09-29 19:33:47 GMT)
--------------------------------------------------

Abgrenzungsbetrag would be a deferred amount, but you wouldn't say that. I have no idea what the link about tax deductible items has to do with this. It says "A prepaid expense is an expense you pay ahead of time". So it obviously is not the deferred taxes they're talking about.

Michael Rose
Germany
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 35

Peer comments on this answer (and responses from the answerer)
disagree RobinB: See my comment on Alison's answer. It really is a "prepaid expense", because deferred tax assets are classified as prepaid expenses under HGB accounting (German/Austrian).
42 mins
  -> I still don't like the other answer because it still is a deferred tax asset
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