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 Deferrals 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