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German to English translations [PRO] Bus/Financial - Accounting
German term or phrase:Ausbuchung
Ausbuchung von Forderungen
This is an item in the income statement. Normally I'd just follow the terminology of IAS 39 and say 'Derecognition of receivables'. However, my client has proposed 'write-off of reeivables'. Then again, Leo offers 'write-offs charged against the allowance' I hate it when doubt starts creeping in, or maybe I'm just tired. Would be grateful for a bit of moral support and maybe an explanation of the differences. Cheers.
Explanation: Your client looks like yet another example of "a little knowledge is a dangerous thing". Or possibly the "I can English" brigade...
Derecognition is the end of the lifecycle of an asset or liability that begins with its recognition. It entails the removal of an asset or liability from the books and is the result of something else, for example impairment or disposal.
A 'write-off' is the reduction in the asset's or liability's carrying amount to 0, i.e. a 100% impairment loss, which then in turn, of course, leads to derecognition.
As the asker rightly notes, the term "derecognition" is defined in IAS 39.9 as:
"Derecognition is the removal of a previously recognised financial asset or financial liability from an entity's balance sheet."
The German version of IAS 39.9 contains the following definition of "Ausbuchung":
"Unter Ausbuchung versteht man die Entfernung eines finanziellen Vermögenswertes oder einer finanziellen Verbindlichkeit aus der Bilanz eines Unternehmens."
Thanks, Robin. I was hoping you'd respond - even so late on a Saturday evening! Thanks for everyone else who responded. It's derecognition and nothing else.
Technically, I can't give you the points, and can't enter it in the glossary either until you supply me with an answer instead of the note. Cheers.
Derecognition is the removal of an asset or liability from the books, period: it is the result of something else. A 'write-off' is the reduction in carrying amount to 0, i.e. a 100% impairment loss, which then in turn, of course, leads to derecognition.
To hell with your customer (and with Schäfer!) - 'derecognition' is absolutely right here, while 'write-off' is wrong. There are many reasons why receivables are derecognised, and writing off bad debts is only one of them.
Explanation: - to charge off (eg, as expense or loss)
- to write off (eg, bad debt as uncollectible)
- to close out( eg, cost of plant removed)
- to abandon (eg, take fixed asset from the books)
Kathi Stock United States Local time: 17:13 Works in field Native speaker of: German PRO pts in category: 11
Explanation: derecognition, as per Price Water House Coopers
"Derecognition in the context of financial assets is the removal of the financial asset from the balance sheet through sale, payment, renegotiation, or default of the counter party."
investorwords.com defines write-off as "To charge an asset amount to expense or loss, in order to reduce the value of that asset and one's earnings."
If receiveables are being "ausgebucht" it's a write-off.
Write-off's in the US are losses that the IRS accepts for tax purposes.
SusieZ United States Local time: 18:13 Works in field Native speaker of: English PRO pts in category: 54
Explanation: Your client looks like yet another example of "a little knowledge is a dangerous thing". Or possibly the "I can English" brigade...
Derecognition is the end of the lifecycle of an asset or liability that begins with its recognition. It entails the removal of an asset or liability from the books and is the result of something else, for example impairment or disposal.
A 'write-off' is the reduction in the asset's or liability's carrying amount to 0, i.e. a 100% impairment loss, which then in turn, of course, leads to derecognition.
As the asker rightly notes, the term "derecognition" is defined in IAS 39.9 as:
"Derecognition is the removal of a previously recognised financial asset or financial liability from an entity's balance sheet."
The German version of IAS 39.9 contains the following definition of "Ausbuchung":
"Unter Ausbuchung versteht man die Entfernung eines finanziellen Vermögenswertes oder einer finanziellen Verbindlichkeit aus der Bilanz eines Unternehmens."
RobinB Local time: 00:13 Specializes in field Native speaker of: English PRO pts in category: 837
The translation workplace 
