The Accounting Principles

Explanation of the different accounting policies accounting policies represent requirements and principles in the creation of the balance in the context of the annual financial statements. The accounting principles can be derived from the regulations in the German commercial code (HGB). Read additional details here: César Hernández. In preparing the balance sheet HGB is on clarity and transparency with regard to the structure of the balance sheet and income statement gem. 243 para. The outline of the balance has therefore to be done, that it is possible third parties to be able to read the necessary information from it.

The principle of completeness adjusts according to section 246, paragraph 1 to identify all assets, expenses, income, accruals and debt under the corresponding headings HGB the need and not to charge. With the creation of the balance sheet, a regular insinuation of the continuation of the company within the meaning of the principle of the continuation of company gem. 252, para HGB No. 2 is assumed. The guiding principle is a further principle of accounting the consistency dar. This consists of various subsets. The demand that is identical with the opening balance sheet of the current year is the closing balance of the previous year, founded gem. 252, para 1 No.

1 HGB the principle of the identity of the balance sheet. Formal balance continuity is given if over time the presentation and structure of the balance sheet and profit and loss account only when there are compelling grounds does not persist. The application possibility of using assessment methods should in the framework of the principle of the continuity of representation gem. 252, para 1 No. 6 HGB for the current and past year be identical. In addition, must be a delineation of periodically covered by payments based on the principle of accrual pursuant Article 252 paragraph 1 No. 5 HGB. Against the background of the creditor protection is also the principle of realistic and true preparation of the balance sheet pursuant to article 264, paragraph 2 HGB apply. Therefore, the items of the balance sheet with actual conditions of the asset are to make financial and earnings position. The demarcation It is essential from non-essential information to keep in mind the principle of materiality. With the accounting principles, it is realistically possible to check the implementation of the guidelines in the business plan the entrepreneurs as well as third parties. Jens Graupner