Provisions II

Provisions in the balance sheet, income statement and notes

Provisions for contingent liabilities

• Economic causation or legal origin (latest case law and IDW statements).
• Probability of utilization, quantification (impact of case law on practice).
• Case studies: including guarantee obligations, vacation provisions, legal disputes, litigation provisions, wage and salary increases, restoration obligations, restoration obligations, other provisions.
• Discounting requirement, present value approach, discounting technique.

Provisions for pensions and similar obligations

• Case studies on direct obligations (pension commitments).
• Valuation of plan assets.
• Discounting, interest rate appropriate to the term.

Provisions for impending losses from pending transactions

• Continuing obligations, procurement and sales transactions.
• Effects of the new IDW regulations on practice.

Further approach bids

• Provisions for deferred maintenance, removal of overburden, warranties.
• Case study on the preparation of a statement of changes in provisions.

The ABC of provisions

• From A for demolition costs to Z for interest rate swaps.

Accounting policy options

Effect on the determination of taxable profit

• Tax valuation reservation, new regulations by the BMF.

Deferred taxes

Key differences between HGB and IFRS

• Possibilities for consistent accounting and mandatory differences, current case studies.