Which values have to be included in the balance sheet?
February 10, 2022 | 50,00 EUR | answered by Christiane Fuchs
Dear tax consultant,
My name is Erika Dietrich and I am the managing director of a small trading company. This year, we need to prepare our balance sheet, but I am unsure about which values need to be included in the balance sheet.
Regarding the current situation of our company: In the last financial year, we generated a turnover of 500,000 euros and a profit of 50,000 euros. Our total assets amount to 300,000 euros, with 100,000 euros in equity and 200,000 euros in liabilities. Additionally, we have various assets such as real estate, machinery, and inventory with a total value of 150,000 euros.
My concern is that I am unsure about which specific values and positions need to be included in the balance sheet to provide an accurate and transparent picture of our company's financial situation. I want to ensure that the balance sheet complies with legal requirements and does not omit any important information.
Therefore, my question to you is: Which values need to be included in the balance sheet to present a complete and meaningful picture of our company's financial situation? Are there specific regulations or guidelines that I need to follow? What measures can be taken to ensure that the balance sheet contains all relevant information and meets legal requirements?
Thank you in advance for your support and advice.
Best regards,
Erika Dietrich
Dear Mrs. Dietrich,
Thank you for your inquiry regarding the creation of your company's balance sheet in the trade sector. It is important to create a correct and transparent balance sheet in order to present a meaningful picture of your company's financial situation. In your question, you have already mentioned some important key figures that need to be included in the balance sheet to get a complete picture.
First of all, it is important to correctly record the assets and liabilities. Assets include all assets such as real estate, machinery, and inventory. These must be included in the balance sheet at their current value. It is important to regularly take inventory to properly evaluate the stocks. In addition, receivables and liquid assets must also be included in the balance sheet.
On the liabilities side, equity and debt must be disclosed. Equity consists of contributions from shareholders and earned profits. Debt includes loans and obligations to suppliers and other creditors. Provisions and possible liabilities must also be recorded.
It is important that the balance sheet complies with legal requirements. In Germany, the Commercial Code (HGB) regulates the regulations for the preparation of a balance sheet. The principles of proper accounting (GoB) and the principles of proper balance sheet accounting (GoBil) are defined here. These principles must be observed in order to create a correct balance sheet.
To ensure that your balance sheet contains all relevant information, I recommend seeking advice from an experienced tax advisor or auditor. A professional can help you correctly record all positions and ensure that your balance sheet complies with legal requirements. Additionally, they can provide you with tips and recommendations on how to make your balance sheet even more meaningful.
I hope that I could help you with this information. If you have any further questions or wish for more detailed advice, I am at your disposal.
Best regards,
Christiane Fuchs
