Abgrenzungsbetrag

English translation: (here) capitalized as prepaid expenses

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Abgrenzungsbetrag
English translation:(here) capitalized as prepaid expenses
Entered by: Alison Schwitzgebel

05:50 Sep 29, 2006
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
Local time: 06:04
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.
Selected response from:

Michael Rose
Local time: 06:04
Grading comment
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3capitalized as prepaid expenses
Alison Schwitzgebel
4 -1deferred tax asset
Michael 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 Schwitzgebel
France
Local time: 06:04
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 342

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
Login to enter a peer comment (or grade)

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
Local time: 06:04
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 39

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
Login to enter a peer comment (or grade)



Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.


See also:

Your current localization setting

English

Select a language

Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search