Aufzinsung

English translation: interest (cost?)

09:41 Oct 23, 2002

German to English translations [PRO]
Bus/Financial - Accounting / Accounting

German term or phrase: Aufzinsung

Übriges Finanzergebnis
Aufzinsung der Pensionsrückstellungen
Aufzinsung von sonstigen Rückstellungen

I would not only appreciate a correct translation for Aufzinsung, but also an explanation as to what exactly Aufzinsung means (and what happens to the pension accruals and other provisions when they get aufgezinst). For what it's worth, this company reports in accordance with IAS.

Beate Lutzebaeck KudoZ activity Questions: 396 (none open) (4 closed without grading) Answers: 1421 New Zealand
Local time: 20:53

English translation:interest (cost?)

Explanation:
oder "interest calculation" (calculated interest?)

Bin mir zwar auch nicht ganz sicher, aber füge zur Info a) eine zweisprachige Bilanz (Suche nach "Aufzinsung" in PDF) und b) eine Kurzdefinition für "Aufzinsung" an.

HDH
Steffen :-)

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Note added at 2002-10-23 10:00:04 (GMT)
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Aus der gegebenen Def. (URL #2) könnte man evtl. auch \"interest accumulated\" oder \"interest accrued\" ableiten.

Selected response from:

Steffen Walter
Germany
Local time: 10:53

Grading comment

Sorry guys, nothing really convinced me. In the end, I decided to go with "pension accruals revalued for accrued interest" although I'm not sure whether that is correct either. Der eine Gummipunkt geht an Steffen, dessen Antwort auch von Robin bestätigt wurde.
1 KudoZ points were awarded for this answer

Summary of answers provided

3 +2

compounding

Ralf Lemster

interest cost

RobinB

accumulation

taxman

interest (cost?)

Steffen Walter

Discussion entries: 1

Answers

11 mins confidence:

interest (cost?)

Steffen Walter
Germany
Local time: 10:53
Specializes in field
Native speaker of:

German
PRO pts in category: 444

Grading comment

25 mins confidence:

peer agreement (net): +2

compounding

Explanation:
"Aufzinsung" describes the process of calculating the future value of money, given its present value, the time to maturity, the interest payment frequency and the applicable interest rate. IOW this is the reverse calculation of a present value.

What confuses me here is the context: I would have expected discounting ("Abzinsung") rather than compounding - is this shown on the income statement?

Ralf Lemster
Germany
Local time: 10:53
Native speaker of: German
PRO pts in category: 183

1 hr confidence:

accumulation

Explanation:
accumulation is an act of compounding. This is somewhat simpler than the word compounding itself but mabe an acceptable alternative.

Good luck.

taxman
Local time: 10:53
PRO pts in category: 4

22 hrs confidence:

interest cost

Explanation:
Aufzinsung here simply means the "interest cost" of the provision. All discounted liabilities essentially entail an interest cost as the come closer to settlement. Fully explained in e.g. IAS 19, FAS 34, FAS 87, FAS 106. Here's what IAS 19.82 has to say:
"Interest cost is computed by multiplying the discount rate as determined at the start of the period by the present value of the defined benefit obligation throughout that period, taking account of any material changes in the obligation. The present value of the obligation will differ from the liability recognised in the balance sheet because the liability is recognised after deducting the fair value of any plan assets and because some actuarial gains and losses, and some past service cost, are not recognised immediately. [Appendix A illustrates the computation of interest cost, among other things]".

One final thing: Rückstellung are (*always*) provisions in IASs, not accruals. IAS 37.11 defines and explains the difference.

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Note added at 2002-10-24 07:56:54 (GMT)
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Under the IASs, accruals are normally subsumed under liabilities in IAS FS, but may be disclosed as a sub-category of provisions. For pensions and other employee benefits, IAS Rückstellungen will always be provisions.

RobinB
United States
Local time: 03:53
Specializes in field
Native speaker of:

English
PRO pts in category: 993

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