Accounting

The liquidation value of a company is determined by valuing all assets minus debts and costs, used when other methods show lower values. It serves as the minimum value for sales decisions.

The income approach calculates the company value based on future, adjusted operating profits. It discounts these profits with the risk-adjusted cost of equity.

The company value is central in sales negotiations and can be determined using various methods such as the Discounted Cash Flow. This DCF method is based on discounted future earnings and requires extensive data analysis.

Shareholder loans can be used as a means of corporate restructuring, with profit-effective waivers of claims representing restructuring gains. For tax purposes, they are treated as non-profit-effective if it is hidden equity or if granted during poor business performance.

The Federal Court confirmed that a farm qualifies as a hobby rather than an independent economic activity without profit-seeking intentions from 2011 onwards. A deferral of taxes when transferring business assets to private assets was rejected because an incorrect legal basis was cited.

Legal entities may book provisions as expenses to reduce taxable income. Fines without penal character may also be recorded as provisions.

Findea AG introduces fixed-price accounting subscriptions that support small businesses and cover complex requirements. The subscriptions can be canceled at any time and also offer additional services such as tax advice.

Expenses such as travel and accommodation costs are tax deductible if they are business-related. The burden of proof lies with the taxpayer, otherwise, they will be offset against profits.

Joint-stock companies must allocate 5% of their annual profits to general reserves until these reach 20% of the share capital. Additional allocations are required for premium income and other revenues.