Policy on income or any special event or a burden to identify the division of income means unknown in the present or future.
Some need to protect against an unexpected loss provisions, eg provision for doubtful debts. Other expenses may make for the
future (capital or revenue) eg depreciation fund. Charge effects / treatment provisions - the profit and loss account or
income and expenditure account or the profit and loss account, and then determine the amount to your account. Account balance
for the cumulative balance will be offered a reduction on the liability side, some stock or assets or if an additional
provision against a particular property.
International groups and foreign record books tough situation is to keep relaxed, effective from 1st of January 2009 a
provision that the tax offices, so that individual companies in the record books and other European Union / EEA countries
regularly exchange with Germany Information can maintain.
Intended for the international groups in a shared service center for the EEA is to adjust its accounting Union. Conditions
for admission are:
* Electronic records should be prepared. Handwritten notes and paper documents (eg invoices print) all the time in
Germany, will remain.
* The company should ensure that the tax authorities have used online data access for government officials and
foreign non-recognition should achieve.
* The company and its German tax purposes, the data center should be part of the exact location and / or server or
setup program.
* The company is required to ensure that the record is to ensure that in an environment maintained at an appropriate
level of control do not have enough German accounting rules to comply fully with all the formalities.
* In the past, to fulfill their compliance obligations companies have.
Each one carefully and systematically managed care company from liability in exchange for planning a responsibility rather
than a property or other important business meeting goals makes certain provisions of the present results.
This type of effort or damage to determine liability, the amount can be done with great accuracy is determined. Profit or
loss as possible shall be determined as well, care for and thus determine the risks or losses and income losses incurred
during the period the amounts estimated dose is needed. Amounts, land laws, 'as different sets. "
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