11:33 Sep 5, 2011 

Thanks Robin and Ted for your help - knowing about German condominium accounting practices is a pretty specialised field of expertise!
What seems to have necessitated this change is BGH-Urteil Az V ZR 44/09 of December 2009, which is described here:

http://www.presseportal.de/pm/6856/1570220/bgh-urteil-ueber-...

- just in case we ever need to deal with the matter again!!

Thansk again to both of you!

01:30 Sep 5, 2011 

Thanks for the explanation Robin. I couldn't find "Rückstellungsvermögen" in any usage other than a mechanical/"output"-related meaning. Now if I ever have to deal with German condos, I won't pull out my hair.

21:16 Sep 4, 2011 

First, "Vermögen" is also used in certain circumstances for liabilities, as in the term "Passivvermögen", meaning "all liabilities". So "Rückstellungsvermögen" isn't necessarily a contradiction.

Second, "Rückstellungsvermögen" is indeed a confusing term, and not merely because it's not actually a "Rückstellung" in the classic accounting sense. It's an established term (so not the result of a mistake by a judge), and it's only used in the accounts of condominiums, but one of the surprising things is that it's actually a *cash reserve*, not a traditional accounting provision (which is a non-cash book item). As Ted rightly surmises, it's used for maintenance and repairs - but only for those expenses that are above a certain size, so not e.g. for routine maintenance and repairs (which are covered by the standard Instandhaltungsrücklage).

In light of this, I would suggest "special maintenance reserve" for "Rückstellungsvermögen". I interpret "ausbuchen zu Lasten..." here as "eliminate against..." (makes sense, I think).

For the phrase "zu Lasten des buchhalterischen Rückstellungsvermögens ausgebucht", I'd suggest "eliminated against the special maintenance reserve in the accounts".

18:24 Sep 4, 2011 

and looking at this as a "civilian" (or worse, a judge). And as someone somewhat familiar with homeowners' associations.

But first - the Instandhaltungsrücklage is a "maintenance reserve". Sorry, I hadn't finished my coffee when I first answered.

These condo owners probably have to pay periodic maintenance fees for upkeep on common areas. Those funds go into the maintenance reserve to fund future upkeep work. If the homeowners don't pay their condo dues, they become outstanding receivables. For whatever reason, the court decided on the procedure cited to determine the opening balance of the maintenance reserve in the event that there are outstanding (and probably uncollectable) condo fees due.

It's possible the judge is mixing up "Rücklage" and "Rückstellung" or they are simply not being used as they are the "normal" accounting jargon.

It would be nice to find the actual court ruling but Google is not my friend today in that respect.

17:53 Sep 4, 2011 

Thanks Ted - that's what I thought too, the source text does seem odd: however, an identical passage is given here: http://www.haus-verwalter.de/index.php?option=com_content&vi...

so it looks as if this is the "approved" form of words - whatever they're supposed to mean!
Thanks again,
John

16:08 Sep 4, 2011 

Ignoring the very odd wording (a Rückstellung is an equity item and Vermögen are assets), here's what it basically says in normal accounting speak (and plain English in parens).

The opening balance of the maintenance provisions is determined as follows. The outstanding receivables from condominium owners/co-owners recognized (shown) in assets in the 2010 annual accounts are written off against the accounting provision, without a receivables waiver . These receivables will continue to be accounted for and collected. Any amounts collected later are added to the provision.

Problems with the source text.

Rückstellungsvermögen is a contradiction in terms in an accounting sense.

If the outstanding receivables are written off (ausgebucht) how can they continue to be presented in the accounts (weiter dargestellt)? Unless the author means that, even though they are written off (as uncollectable), the bookkeeper will continue to try to collect them.

Again very odd and I would GUESS not written by someone who knows accounting terminology.

13:23 Sep 4, 2011 

heavy stuff. no idea.