Differences in accounting

1. Differences in accounting Topic: End of year closing

2. Overview:  End of year closing

3. Details Austria 1/2 • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • (example for deferred charges in case of insurances) • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • (example for deferred income definition like thrown interest) and provisions. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as demands. • Provisions must not be made in lump sums. • The creation of provisions is only legal, if there are concrete reasons for it • Guaranteed benefits which belong to the conclusion year, a provision can be made for.

4. Details Austria 2/2 • Enterprises whose turnover is more than 400.000 € in two successive years must keep account and make annual closings of accounts. • concerning grocers each 600.000 €, • if the value is more than 150.000 € on the 1 January, then agricultural and forestry companies have to keep accounts and to make annual closings of accounts. • Full businessmen must make a pension provision for the pension liabilities in their balance sheet for their employees and also for settlements on dismissal. • The annual closing of accounts must be settled up by retailers and partnerships within nine months after the balance sheet date. • With corporate enterprises it must be settled up within the first five months after the final closing day. • For small limited liability companies there is no duty for checking the annual closing of accounts • Books and records, also the enclosing vouchers have to been kept seven years.

5. Details Denmark • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • (example for deferred charges in case of insurances) • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • (example for deferred income definition like thrown interest) and provisions. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as liabilities. • All Enterprises must keep account and make annual closings of accounts.  • Full businessmen must make a pension provision for the pension liabilities in their balance sheet for their employees and also for settlements on dismissal. Depends on the negotiations with union • For small limited liability companies there is no duty for checking the annual closing of accounts • Books and records, also the enclosing vouchers have to been kept five years.

6. Details Germany • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • (example for deferred charges in case of insurances) • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • (example for deferred income definition like thrown interest) and provisions. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as demands. • Provisions must not be made in lump sums. • The creation of provisions is only legal, if there are concrete reasons for it • Guaranteed benefits which belong to the conclusion year, a provision can be made for.

7. Details Germany • Enterprises whose turnover is more than 350.000 € or the profit is more than 30.000 € must keep account and make annual closings of accounts. The demand will be funded by the finance office. • Full businessmen must make a pension provision for the pension liabilties in their balance sheet for their employees and also for settlements on dismissal. • The annual closing of accounts must be settled up by retailers and partnerships within fourteen months after the balance sheet date. • With corporate enterprises it must be settled up within the first six months after the final closing day. • For small limited liability companies there is no duty for checking the annual closing of accounts • Books and records, also the enclosing vouchers have to been kept ten years.

8. Details Estonia • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • Per Accrued income & Deferral´s account An Insurances. • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • Per Expenses account An Accruals´ & Prepayments´ account. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as demands. • Provisions mustn't be made in lump sums. • The creation of provisions is only legal, if there are concrete reasons for it • Guaranteed benefits which belong to the conclusion year, a provision can be made for. • Pensions must be booked yearly, no provisions are allowed • All Enterprises must keep account and make annual closings of accounts.  • The annual closing of accounts must be settled up by retailers and partnerships within nine months after the balance sheet date. • All companies have duty for checking the annual closing of accounts. • Books and records 7 years, and the enclosing vouchers have to been kept 7 years.

9. Details Finland • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • Per Accrued Income & Deferral's account An Insurance expenses. • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • Per Expenses account An Accruals & Prepayments account. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as demands. • Provisions mustn't be made in lump sums. • The creation of provisions is only legal, if there are concrete reasons for it • Guaranteed benefits which belong to the conclusion year, a provision can be made for. • Pensions must be booked yearly, no provisions are allowed • All Enterprises must keep account and make annual closings of accounts.  • The annual closing of accounts must be settled up by retailers and partnerships within nine months after the balance sheet date. • All companies have duty for checking the annual closing of accounts. • Books and records 10 years, and the enclosing vouchers have to been kept six years.

10. Details Hungary • All expenses already booked, which do not touch the current year, will be parked on active asset accounts • (example for deferred charges in case of insurances) • All expenses, that touch the conclusion year but arise for the next year, will be proportionate deducted. • (example for deferred income definition like thrown interest) and provisions. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • Own arrears should be shown as liabilities and third-party arrears should be shown as demands. • Provisions mustn't be made in lump sums. • The creation of provisions is only legal, if there are concrete reasons for it • Guaranteed benefits which belong to the conclusion year, a provision can be made for.

11. Details United Kingdom • All expenses already posted, which do not touch the current year, will be parked on active asset accounts • Per Accrued income & Deferral's account An Insurance expenses. • All expenses, that touch the conclusion year but arise for the next year, will be proportionately deducted. • Per Expenses account An Accruals & Prepayments account. • All accruals and provisions will be resolved in the next year. • At the deferred items we make a distinction between two types: advance payment and arrears • Concerning the advanced payments the part which belongs to the next year will be accrued, concerning the arrears it is the part which belongs to the conclusion year. • An expense or a proceed which concerns the next year, can be immediately recorded on a deferred account. • The Booking is exempt from VAT. • The creation of provisions is only legal, if there are concrete reasons for it • All companies have duty for checking the annual closing of accounts.

12. Details IFRS International Financial Report Standards