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Passive Rechnungsabgrenzung = Prepayments and defe

English translation: see below

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09:16 May 26, 2000
German to English translations [PRO]
Bus/Financial - Accounting
German term or phrase: Passive Rechnungsabgrenzung = Prepayments and defe
Passive Rechnungsabgrenzung = Prepayments and deferred charges

Does that sound OK to you?
cru
English translation:see below
Explanation:
"Der Kleine Eichborn" agrees 100% with Romain, also giving "deferred credits to income" but "Zahn" gives either "prepaid income or accrual method of income recognition". To make things worse Hamblock/Wessels says that "passive Rechnungsabgrenzungen" are "deferrals or deferred income or accrued expenses". Arthur Andersen gives "deferred charges". Now what do you do? Put them all in a hat and draw one out?
Selected response from:

Dan McCrosky
Local time: 21:40
Grading comment
2 KudoZ points were awarded for this answer

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Summary of answers provided
nadeferred incomeDan McCrosky
naaccrued and deferred liabilities
Roy Fox
nasee belowDan McCrosky
nadeferred credits to income
Deborah Shannon


  

Answers


32 mins
deferred credits to income


Explanation:
From Romain's Dictionary of Legal and Commercial Terms

aktive Rechnungsagrenzung: prepaid expenses / passive Rechnungsabgrenzung: deferred credits to income

Deborah Shannon
Germany
Local time: 21:40
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
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1 hr
see below


Explanation:
"Der Kleine Eichborn" agrees 100% with Romain, also giving "deferred credits to income" but "Zahn" gives either "prepaid income or accrual method of income recognition". To make things worse Hamblock/Wessels says that "passive Rechnungsabgrenzungen" are "deferrals or deferred income or accrued expenses". Arthur Andersen gives "deferred charges". Now what do you do? Put them all in a hat and draw one out?

Dan McCrosky
Local time: 21:40
Native speaker of: Native in EnglishEnglish
PRO pts in category: 14
Login to enter a peer comment (or grade)

1 hr
accrued and deferred liabilities


Explanation:
This strikes us as more logical than the solution offered by Schäfer, namely "accruals and deferred income", since deferred income is scarcely a liability. The translation given above is the one commonly used for the assets side, so it must be wrong. The trouble with this item is that it doesn't exist in any US or British accounts as far as I know, because recognition is by means of provisions.

Roy Fox
Austria
Local time: 21:40
Works in field
PRO pts in category: 4
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19 hrs
deferred income


Explanation:


Referring to Roy's answer above. I could very easily believe that deferred income could be carried over from one year to the next on the liability and equity side of a balance sheet. A sort of negative liability against the company's own future earnings. If a company receives a payment for its goods or services or goods in the year 2000 but does not render or deliver until 2001, what do they do with the money in 2000? One thing they could do is to debit cash and credit an account called deferred income on the liabilities side. Then when they render or deliver in 2001 they could debit the deferred income account out of existence and credit income. Would that be possible? - In the mean time I have also found a trilingual balance sheet description which also shows "deferred income" as "Passive Rechnungsabgrenzungsposten".

http://www.online-club.de/~blackbox/hgb266.html -

http://www.bwa.at/gesetze/texte/bwgA02.html -

The above references show that these "Rechnungsabgrenzungsposten" can be on either the assets or liabilities and equities side, the assets side for deferred expenses and the other side for deferred income.









Dan McCrosky
Local time: 21:40
Native speaker of: Native in EnglishEnglish
PRO pts in category: 14
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