Accounting

Provisions reflect future cash outflows without consideration, based on legal or past obligations, the details of which are often uncertain. They are recorded in balance sheets and dissolved when the obligation ceases.

Goodwill is the difference between the purchase price of the company and the value of the net assets, reflecting brand value and expected excess profits. Regulations require goodwill to be capitalized and it can be amortized over its useful life.

Accrual accounting facilitates the implementation of the accrual principle by recording revenues and expenses without direct cash flow. It distinguishes between active and passive accruals, which are resolved in accordance with the accounting period.

Proper accounting follows basic principles such as materiality, clarity, and completeness to ensure transparency and comparability. It is essential for the assessment of the economic situation by external recipients.

The initial valuation of inventories takes into account additional costs in addition to the purchase price; the subsequent valuation adjusts the value through principles such as Lifo or Fifo.

Hidden reserves arise when assets are valued differently in the books than in the market. Their realization occurs, for example, through sale or book value appreciation.

Receivables are generally assessed at face value, with risks such as default of payment and currency fluctuations requiring value adjustments. Value corrections are made as bad debt provisions through indirect items with a negative balance.

Liquid assets are essential on the balance sheet, as they indicate the ability to invest. They include cash, credit balances, and easily marketable securities.

According to the law of obligations, short-term liabilities must be separately disclosed in the balance sheet and divided into various categories. They are central to assessing the financial position of a company, as they significantly affect liquidity and capital structure.