Correctly accounting for buildings and operating equipment

Acquisition and production costs

• Concept of acquisition and production costs for buildings and operating equipment.
• Scope and elements of acquisition costs.
• Scope and elements of production costs.
• Legal basis for depreciation and amortization.
• Depreciation/amortization methods.

Buildings under commercial and tax law

• Land, buildings and parts of buildings held as business assets.
• Property components from an income tax perspective.
• Wearability.
• Capitalization options and capitalization prohibitions.
• Differences between commercial and tax law.

Treatment of buildings and parts of buildings used by the company on third-party land

• Recognition of acquisition and production costs.
• Treatment of, among other things, estate agent fees, land transfer tax, notary and land registry fees, expenses for taking out and registering a mortgage and land charge (so-called financing costs).

Tenant fixtures and tenant conversions

• Fictitious components, operating equipment, other leasehold improvements or conversions.

Treatment of operating equipment

• Legal demarcation of operating facilities from buildings.
• Operating equipment as machines, machine-like equipment and other parts of the operating plant.
• Independent, movable, depreciable assets as essential components of the land or building.

Case studies on accounting for buildings and operating equipment

Changes due to the new HGB (BilMoG) and tax effects