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depreciation vs. expensing

English translation: fully written off and recorded as a disposal

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20:41 Apr 2, 2002
German to English translations [PRO]
Bus/Financial
German term or phrase: depreciation vs. expensing
context: balance sheet
specific item: "andere Anlagen, Betriebs- und Geschäftsausstattung"

"Die Wirtschaftsgüter, die zur Betriebs- und Geschäftsausstattung gehören, werden überwiegend degressiv über einen Zeitraum von 3 bis 10 Jahren abgeschrieben.

Gegenstände, deren Anschaffungskosten einzeln DM 800,00 nicht übersteigen, wurden im Berichtsjahr in Höhe von DM 2.648,48 angeschafft, voll abgeschrieben und als Abgang gebucht."

To my mind, these low-value items were simply expensed in the reporting year. Are there German accounting intricacies that require me to translate this as "fully written off and booked/recorded as a disposal?"

TIA for any advice, Beth :-)
Beth Kantus
United States
Local time: 05:04
English translation:fully written off and recorded as a disposal
Explanation:
you're right, of course, about what is happening - expensed in the year of acquisition - but there is a requirement in the tax laws that these items be recorded in a separate schedule and this is usually taken to mean capitalising them on an account called "geringwertige wirtschaftsgueter" and writing them off 'en bloc' at year-end. It all depends how free your translation is allowed to be: expensing gives the meaning, depreciation/disposal is closer to the German way of thinking
Selected response from:

Rod Darby
Ghana
Local time: 09:04
Grading comment
Very helpful explanation of the requirements under the German tax laws - thanks very much for your help!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +2fully written off and recorded as a disposalRod Darby
5Depreciable property was expensed in the year of acquisition
EMatt


  

Answers


12 mins   confidence: Answerer confidence 5/5 peer agreement (net): +2
fully written off and recorded as a disposal


Explanation:
you're right, of course, about what is happening - expensed in the year of acquisition - but there is a requirement in the tax laws that these items be recorded in a separate schedule and this is usually taken to mean capitalising them on an account called "geringwertige wirtschaftsgueter" and writing them off 'en bloc' at year-end. It all depends how free your translation is allowed to be: expensing gives the meaning, depreciation/disposal is closer to the German way of thinking

Rod Darby
Ghana
Local time: 09:04
Native speaker of: English
PRO pts in pair: 193
Grading comment
Very helpful explanation of the requirements under the German tax laws - thanks very much for your help!

Peer comments on this answer (and responses from the answerer)
agree  Beate Lutzebaeck: Or: "are written off in full". To Beth: "expensing" has a different meaning (als Aufwand verbuchen)
17 mins

agree  xxxDr.G.MD: Absolutely, this captures it all up.
3 hrs

neutral  gangels: ...and recorded as nonrecurring item (not disposal)
3 hrs
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29 mins   confidence: Answerer confidence 5/5
Depreciable property was expensed in the year of acquisition


Explanation:
Basically assets need to be depreciated. Sec. 179 IRC allows the expensing of depreciable property in the year of acquisition under certain circumstances.


    Internal Revenue Code Section 179
EMatt
Local time: 05:04
Native speaker of: Native in GermanGerman, Native in EnglishEnglish
PRO pts in pair: 222
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