Provisions I

Basis provisions

• Terminology and characteristics of provisions.
• Recognition options, recognition prohibitions, recognition options.
• Differentiation from liabilities.
• Differences to the tax balance sheet.

Provisions for contingent liabilities

• Recognition requirements, accounting obligations and prohibitions in the commercial and tax balance sheet.
• New formation, utilization and dissolution.
• Current cases from practice and case law.

Provisions for impending losses from pending transactions

• Recognition requirements, differences to the tax balance sheet.
• Differentiation from provisions for liabilities.
• Individual cases in procurement transactions, sales transactions and continuing obligations.
• New regulations by the IDW.

Provisions for pensions and similar obligations

• Emergence of pension obligations.
• Pension commitments, reinsurance policies, pension assets, new regulations on provisions for partial retirement.
• New legal regulations and possibilities for discounting.
• Release and utilization of pension provisions.

Valuation of provisions

• Calculation basis, discounting of provisions.
• Inflation, individual issues.
• Similarities and differences to the tax balance sheet.
• Current BFH case law and letters from the tax authorities.

Disclosures in the annual financial statements and accounting methods

• Recognition in the balance sheet and income statement.
• Notes to the financial statements.
• Structure of the provision schedule.
• Posting of provisions.
• Utilization and reversal of provisions.

Effects of provisions

• Effects on earnings and equity.
• Recognition of deferred taxes.