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Projekt wird voraussichtlich zur Hälfte in 2015 umsatz- und ertragswirksam

English translation: It is expected that the project will be recognised in sales and income in 2015 to an extent ...

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15:47 Aug 24, 2014
German to English translations [PRO]
Bus/Financial - Accounting / Company description
German term or phrase: Projekt wird voraussichtlich zur Hälfte in 2015 umsatz- und ertragswirksam
This information is from a German company's website and is part of the description of their current and past projects. I thought about saying ''...credited to earnings in 2015'', but I don't think that sums it up quite right. Any suggestions would be greatly appreciated.
Rena Katikos
Austria
Local time: 15:58
English translation:It is expected that the project will be recognised in sales and income in 2015 to an extent ...
Explanation:
of 50%.

I think IFRSs would use recognised in sales here regarding the element of Umsatz, cf. http://ifrs.wiley.com/chapters/w9781118277256c20

The term revenue in turn (which at least before attending to the question of proper US GAAP usage in US business English is the preferred term for Umsatz, even if as indicated without researching the matter I do not know whether US GAAP uses the term that way) means Erträge/Ertrag in IFRS lingo.

Please note that Erträge can either mean Einnahmen (funds collected by the vendor of the goods or service provider in return for the latter or the services rendered) or a bottom line arrived at deducting items like for instance expenses from the former (a balance).

It obviously means such a balance here, otherwise no distinction would be made juxtaposing it to sales/Umsatz (= Einnahmen in very basic everyday talk, basically) in the source to be translated.

I know that income can mean just that (a balance after in particular deducting expenses faced in order to produce the goods or render the service sold later on) in accounting lingo.

The rest (I mean that the proper translation of Ertrag here is income) I really just inferred from Robin's answer, meaning this is where it really gets a bit too specific for me in regard to the uses in the different accounting systems and UK English as the variant IFRSs uses vs. US English and the proper technical word for Ertrag in English depending on the specific definition of the word Ertrag applicable in the context etc.

Ramey's "recognised AS income" is fine, too. I have a doubt about the collocation "recognised as sales" though I have been able to verify it among reliable resources only just in 4 or 5 references so for linguistic consistency I went with "recognised IN sales and income". Eventually, it will be up to a native accounting translator to decide which is better, "recognised in sales and income" or "recognised as sales and income".

My translation of "zur Hälfte in 2015" is the educated guess of a source language speaker not having read the source document in its entirety and thus not really knowing that much about the story. It is neither more nor less than that.


--------------------------------------------------
Note added at 18 hrs (2014-08-25 10:28:26 GMT)
--------------------------------------------------

The Wiley sentence in question reads "The seller/issuer of the note will amortize the discount to interest expense over the life of the note, and the unearned revenue will be recognized in sales as the products are sold to the purchaser/lender at the reduced price."

--------------------------------------------------
Note added at 18 hrs (2014-08-25 10:36:25 GMT)
--------------------------------------------------

The largest Austrian utility group surrounding the Verbund AG (I do not know whether the former is the holding company of the group, well the parent to wholly owned subsidiaries like Austrian Power Grid AG it is - I think -- looking up group structures takes time, you know, that not everyone has) uses "recognised in sales" the following way in its 2012 Annual Report: The forward contracts that are not recognised in sales went up by 10.9% to 162,819 GWh. http://bit.ly/VNPjCl

--------------------------------------------------
Note added at 19 hrs (2014-08-25 10:52:06 GMT)
--------------------------------------------------

Should read (a balance remaining after in particular deducting expenses incurred in order to produce the goods or render the service sold later on)

--------------------------------------------------
Note added at 19 hrs (2014-08-25 10:53:20 GMT)
--------------------------------------------------

Should read "though as I have been able to verify it among"

--------------------------------------------------
Note added at 1 day1 hr (2014-08-25 17:43:04 GMT)
--------------------------------------------------

Quoting from the source now: "Der Baubeginn des
Objektes mit einer Bruttogeschossfläche von 10.500 Quadratmetern ist für das Ende des 1. Quartals 2014 geplant und die Fertigstellung für Mitte 2015 vorgesehen." - I think this means the builders (Bauherren) of that projects must have agreed completion-related payment terms with the Company. So maybe in June 2015 completion would be reached. Such obviously contractually defined milestone (here: completion) would contractually give rise to the entitlement to issue an invoice in the amount of 50% of the project value. The Principal (the builders) would pay 50% of the project value and upon receipt of that amount, the Contractor (the Company) would have to recognise 50% of the project value in sales and income in its accounts. The other 50% in receipts (>> revenue <<) from the order would probably only be recorded after the passing of many, many a month as the construction industry is infamous for its payment deadlines (and AFAIK partially also its payment practices).

--------------------------------------------------
Note added at 1 day2 hrs (2014-08-25 17:47:18 GMT)
--------------------------------------------------

Sorry, "completion-related payment terms" is a mistake. It's a regular invoice issued upon completion only just with the amount payable split in two batches ('modified normal mode' as it were). Completion-related payment terms would mean making completion dependent upon concurrent payment(s) (Zug-um-Zug-Erfüllung). THe latter is quite common in long-term project-based industries like the construction one.

--------------------------------------------------
Note added at 1 day2 hrs (2014-08-25 17:51:23 GMT)
--------------------------------------------------

Should read The Principal (the builders) would pay 50% of the project value and upon receipt of that amount, the Contractor (the Company) would have to recognise 50% of the project value in sales and income in its 2015 books and hence its annual financial statements for the 2015 period.

--------------------------------------------------
Note added at 5 days (2014-08-30 14:50:53 GMT) Post-grading
--------------------------------------------------

Oh, it's "zur Hälfte in 2014 und zur Hälfte in 2015". Thanks, Phil. So we would have something like "It is expected that the project will be recognised in sales and income in 2014 and 2015 to an extent of 50% each, respectively."
Selected response from:

Sebastian Witte
Germany
Local time: 15:58
Grading comment
Thank you for the additional information regarding the use of ''revenue'' and ''income'' in British and American Business English.
4 KudoZ points were awarded for this answer

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Summary of answers provided
3It is expected that the project will be recognised in sales and income in 2015 to an extent ...
Sebastian Witte
2will be recognized/recognised as income
Ramey Rieger


Discussion entries: 9





  

Answers


15 hrs   confidence: Answerer confidence 2/5Answerer confidence 2/5
will be recognized/recognised as income


Explanation:
I'm afraid you're on your own with the rest.

Ramey Rieger
Germany
Local time: 15:58
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Login to enter a peer comment (or grade)

18 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
It is expected that the project will be recognised in sales and income in 2015 to an extent ...


Explanation:
of 50%.

I think IFRSs would use recognised in sales here regarding the element of Umsatz, cf. http://ifrs.wiley.com/chapters/w9781118277256c20

The term revenue in turn (which at least before attending to the question of proper US GAAP usage in US business English is the preferred term for Umsatz, even if as indicated without researching the matter I do not know whether US GAAP uses the term that way) means Erträge/Ertrag in IFRS lingo.

Please note that Erträge can either mean Einnahmen (funds collected by the vendor of the goods or service provider in return for the latter or the services rendered) or a bottom line arrived at deducting items like for instance expenses from the former (a balance).

It obviously means such a balance here, otherwise no distinction would be made juxtaposing it to sales/Umsatz (= Einnahmen in very basic everyday talk, basically) in the source to be translated.

I know that income can mean just that (a balance after in particular deducting expenses faced in order to produce the goods or render the service sold later on) in accounting lingo.

The rest (I mean that the proper translation of Ertrag here is income) I really just inferred from Robin's answer, meaning this is where it really gets a bit too specific for me in regard to the uses in the different accounting systems and UK English as the variant IFRSs uses vs. US English and the proper technical word for Ertrag in English depending on the specific definition of the word Ertrag applicable in the context etc.

Ramey's "recognised AS income" is fine, too. I have a doubt about the collocation "recognised as sales" though I have been able to verify it among reliable resources only just in 4 or 5 references so for linguistic consistency I went with "recognised IN sales and income". Eventually, it will be up to a native accounting translator to decide which is better, "recognised in sales and income" or "recognised as sales and income".

My translation of "zur Hälfte in 2015" is the educated guess of a source language speaker not having read the source document in its entirety and thus not really knowing that much about the story. It is neither more nor less than that.


--------------------------------------------------
Note added at 18 hrs (2014-08-25 10:28:26 GMT)
--------------------------------------------------

The Wiley sentence in question reads "The seller/issuer of the note will amortize the discount to interest expense over the life of the note, and the unearned revenue will be recognized in sales as the products are sold to the purchaser/lender at the reduced price."

--------------------------------------------------
Note added at 18 hrs (2014-08-25 10:36:25 GMT)
--------------------------------------------------

The largest Austrian utility group surrounding the Verbund AG (I do not know whether the former is the holding company of the group, well the parent to wholly owned subsidiaries like Austrian Power Grid AG it is - I think -- looking up group structures takes time, you know, that not everyone has) uses "recognised in sales" the following way in its 2012 Annual Report: The forward contracts that are not recognised in sales went up by 10.9% to 162,819 GWh. http://bit.ly/VNPjCl

--------------------------------------------------
Note added at 19 hrs (2014-08-25 10:52:06 GMT)
--------------------------------------------------

Should read (a balance remaining after in particular deducting expenses incurred in order to produce the goods or render the service sold later on)

--------------------------------------------------
Note added at 19 hrs (2014-08-25 10:53:20 GMT)
--------------------------------------------------

Should read "though as I have been able to verify it among"

--------------------------------------------------
Note added at 1 day1 hr (2014-08-25 17:43:04 GMT)
--------------------------------------------------

Quoting from the source now: "Der Baubeginn des
Objektes mit einer Bruttogeschossfläche von 10.500 Quadratmetern ist für das Ende des 1. Quartals 2014 geplant und die Fertigstellung für Mitte 2015 vorgesehen." - I think this means the builders (Bauherren) of that projects must have agreed completion-related payment terms with the Company. So maybe in June 2015 completion would be reached. Such obviously contractually defined milestone (here: completion) would contractually give rise to the entitlement to issue an invoice in the amount of 50% of the project value. The Principal (the builders) would pay 50% of the project value and upon receipt of that amount, the Contractor (the Company) would have to recognise 50% of the project value in sales and income in its accounts. The other 50% in receipts (>> revenue <<) from the order would probably only be recorded after the passing of many, many a month as the construction industry is infamous for its payment deadlines (and AFAIK partially also its payment practices).

--------------------------------------------------
Note added at 1 day2 hrs (2014-08-25 17:47:18 GMT)
--------------------------------------------------

Sorry, "completion-related payment terms" is a mistake. It's a regular invoice issued upon completion only just with the amount payable split in two batches ('modified normal mode' as it were). Completion-related payment terms would mean making completion dependent upon concurrent payment(s) (Zug-um-Zug-Erfüllung). THe latter is quite common in long-term project-based industries like the construction one.

--------------------------------------------------
Note added at 1 day2 hrs (2014-08-25 17:51:23 GMT)
--------------------------------------------------

Should read The Principal (the builders) would pay 50% of the project value and upon receipt of that amount, the Contractor (the Company) would have to recognise 50% of the project value in sales and income in its 2015 books and hence its annual financial statements for the 2015 period.

--------------------------------------------------
Note added at 5 days (2014-08-30 14:50:53 GMT) Post-grading
--------------------------------------------------

Oh, it's "zur Hälfte in 2014 und zur Hälfte in 2015". Thanks, Phil. So we would have something like "It is expected that the project will be recognised in sales and income in 2014 and 2015 to an extent of 50% each, respectively."


    Reference: http://www.proz.com/kudoz/german_to_english/accounting/43747...
    Reference: http://bit.ly/1qg8gcU
Sebastian Witte
Germany
Local time: 15:58
Specializes in field
Native speaker of: Native in GermanGerman
PRO pts in category: 70
Grading comment
Thank you for the additional information regarding the use of ''revenue'' and ''income'' in British and American Business English.
Login to enter a peer comment (or grade)




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Changes made by editors
Aug 25, 2014 - Changes made by Sebastian Witte:
Field (specific)Finance (general) » Accounting


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