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Werthaltigkeit

English translation: Valuation (of balance sheet receivables)

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Werthaltigkeit (von Bilanzforderungen)
English translation:Valuation (of balance sheet receivables)
Entered by: Beth Kantus
Options:
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01:29 Apr 3, 2002
German to English translations [PRO]
Bus/Financial - Accounting / auditing
German term or phrase: Werthaltigkeit
context: audit report; specifically, trade accounts receivable

"Die Forderungen aus Lieferungen und Leistungen sind durch eine abgestimmte Saldenliste und das Kontokorrent per 31. Dezember 2001 belegt.
Die Forderungen aus Lieferungen und Leistungen habe ich hinsichtlich ihres Bestandes und ihrer Werthaltigkeit in Stichproben geprüft. Die Konten befinden sich in abgestimmten Zustand."

From what I know about auditing, this appears to me to be a test of the management assertions:

(1) existence (Bestand); i.e., do all claimed receivables exist

(2) completeness/clerical accuracy (abgestimmten Zustand); i.e., are receivables records accurate and in agreement with the general ledger

(3) valuation or allocation (Werthaltigkeit = sustainability?? ); i.e., are the receivables presented at net realizable value

According to my auditing textbook an audit procedure that would be used to test the third assertion would be, for example, to investigate the credit ratings for delinquent and large receivables accounts.

I would very much appreciate opinions/confirmations/corrections on my understanding of this context. Thanks very much in advance to anyone willing to wade through this with me! :-)
Beth Kantus
United States
Local time: 08:44
Valuation
Explanation:
"Valuation" is exact. There are five established and acknowledged overall goals of financial audit (applied by the leading auditing companies):

Existence or Occurrence=Assets and liabilities exist at balance sheet date, and revenue was earned.
Completeness =All transactions have been recorded (opposite of existence assertion).
Rights and Obligations =Assets are owned by the company, and liabilities are company obligations.
Valuation or Allocation = Financial statements are recorded at proper amounts: a. Mechanically correct b. Net realizable value
Presentation and Disclosure=Amounts in the financial statements are properly classified and disclosed."

Source: KPMG


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Note added at 2002-04-04 05:30:47 (GMT) Post-grading
--------------------------------------------------

To Astrid: \"da es darum geht, dass die Bestände einen gewissen Wert haben...\". Einverstanden, genau darum geht es und auch noch darum, ob der \"bestimmte Wert\" angemessen ist, also die Bestände richtig \"bewertet sind\". Ergo - \"Bewertung\"=\"valuation\".


--------------------------------------------------
Note added at 2002-04-08 03:56:30 (GMT) Post-grading
--------------------------------------------------

To Thomas:

impairment
noun

An act, instance, or consequence of breaking : breakage, damage, destruction, wreckage.


www.atomica.com
Selected response from:

Steffen Pollex
Local time: 14:44
Grading comment
Thanks to everyone for your help. I had of course checked the earlier glossary entry before asking, but hoped to receive more input specific to my context. After refreshing my memory by digging into my college accounting textbooks, I am convinced that valuation is the right term in this case.

"Receivables are listed at their estimated collectible amounts (net realizable values)....

...the likelihood exists that a few receivables will not be collected [returns, bad debts, etc.], and this factor should be recognized in the valuation of receivables on the balance sheet...

Net realizable value is one of five alternative methods identified by FASB for the valuation (measurement in monetary terms) of the elements of the balance sheet.

Perhaps this explanation will be of use to someone else with questions about this term in an accounting context, and thanks again to you all for your help!

Best regards,
Beth

4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2[intrinsic] value; valuablenessBeate Lutzebaeck
5ValuationSteffen Pollex
4contribution in kind
Hans-Henning Judek
4 -1Please check glossary first.wrtransco


  

Answers


34 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
contribution in kind


Explanation:
contribution in kind = die Werthaltigkeit der Sacheinlage

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Note added at 2002-04-03 02:17:40 (GMT)
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\"Werthaltigkeit\" is used in many different contexts, including real estate (http://www.immopool.de/vb/rhein-lippe/)

In your context it is, as you have already outlined, the question how \"solid\" the receivable is. It is for exampel possible, to insure it (http://www.indexport.net/content.asp?l=2&r=6)


HTH


    LEO Online dictionary
Hans-Henning Judek
Local time: 21:44
Native speaker of: Native in GermanGerman
PRO pts in category: 12
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40 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
Please check glossary first.


Explanation:
..

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Note added at 2002-04-03 04:33:27 (GMT)
--------------------------------------------------

Sorry, but I merely suggested that she may find there what she is looking for!


    Reference: http://www.proz.com/glossary/167701
wrtransco
Local time: 08:44
Native speaker of: Native in GermanGerman
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
disagree  Tom Funke: Beth is one of the best askers (and answerers) on Kudoz and certainly knows enough not to need such a reminder. As you know, there are many more ways to translate words than a glossary shows, depending on context, connotations, audience etc.
1 hr

neutral  Steffen Pollex: Agree with Tom
1 hr
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
[intrinsic] value; valuableness


Explanation:
I've previously posted this question and while I got many useful answers, there doesn't seem to be a short answer for how to translate Werthaltigkeit. You may want to check under the link given by Mag. RaWa for additional information.

As I understand it, balance sheet items (in your case trade accounts receivable) are checked for a) whether they actually exist (Bestand) and b) whether there is any value attached to them (Werthaltigkeit).

In the past, I've mainly used "intrinsic vale" (Romain, Legal dico) or simply "value" (werthaltige Aktiva = valuable assets; werthaltige Garantie = valuable guarantee; Werthaltigkeit einer Sicherheit = value [valuableness] of a security), as this is basically all it is, the value contained in an asset.


    Zahn, Banking and Stock Trading
Beate Lutzebaeck
New Zealand
Local time: 01:44
Works in field
Native speaker of: Native in GermanGerman, Native in EnglishEnglish
PRO pts in category: 27

Peer comments on this answer (and responses from the answerer)
neutral  Steffen Pollex: "Value" is close but consider mine, too, pls.
1 hr
  -> Er - where is yours? (Or have I gone selectively blind ...?)

agree  Astrid Cruse: yep, das dürfte es sein. "Valuation" scheint mir nicht gut in diesem Kontext, da es darum geht, dass die Bestände einen gewissen Wert haben - und nicht um die Bewertung
3 hrs
  -> Quite

agree  Alev Ellington
12 hrs
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3 hrs   confidence: Answerer confidence 5/5
Valuation


Explanation:
"Valuation" is exact. There are five established and acknowledged overall goals of financial audit (applied by the leading auditing companies):

Existence or Occurrence=Assets and liabilities exist at balance sheet date, and revenue was earned.
Completeness =All transactions have been recorded (opposite of existence assertion).
Rights and Obligations =Assets are owned by the company, and liabilities are company obligations.
Valuation or Allocation = Financial statements are recorded at proper amounts: a. Mechanically correct b. Net realizable value
Presentation and Disclosure=Amounts in the financial statements are properly classified and disclosed."

Source: KPMG


--------------------------------------------------
Note added at 2002-04-04 05:30:47 (GMT) Post-grading
--------------------------------------------------

To Astrid: \"da es darum geht, dass die Bestände einen gewissen Wert haben...\". Einverstanden, genau darum geht es und auch noch darum, ob der \"bestimmte Wert\" angemessen ist, also die Bestände richtig \"bewertet sind\". Ergo - \"Bewertung\"=\"valuation\".


--------------------------------------------------
Note added at 2002-04-08 03:56:30 (GMT) Post-grading
--------------------------------------------------

To Thomas:

impairment
noun

An act, instance, or consequence of breaking : breakage, damage, destruction, wreckage.


www.atomica.com


    own experience with the above employer
Steffen Pollex
Local time: 14:44
Specializes in field
Native speaker of: Native in GermanGerman, Native in RussianRussian
PRO pts in category: 36
Grading comment
Thanks to everyone for your help. I had of course checked the earlier glossary entry before asking, but hoped to receive more input specific to my context. After refreshing my memory by digging into my college accounting textbooks, I am convinced that valuation is the right term in this case.

"Receivables are listed at their estimated collectible amounts (net realizable values)....

...the likelihood exists that a few receivables will not be collected [returns, bad debts, etc.], and this factor should be recognized in the valuation of receivables on the balance sheet...

Net realizable value is one of five alternative methods identified by FASB for the valuation (measurement in monetary terms) of the elements of the balance sheet.

Perhaps this explanation will be of use to someone else with questions about this term in an accounting context, and thanks again to you all for your help!

Best regards,
Beth

Peer comments on this answer (and responses from the answerer)
disagree  Thomas West: Werthaltigkeit is "impairment."
4 days
  -> Where did you find this? Impairment may be translated, at best, as "Wertverlust" (see reference above).

agree  Koetschau: Thomas is only right in the very specific context of impairment test = Werthaltigkeitstest
2701 days
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