Development and current criticism of asset impairment in German tax accounting

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In German tax accounting, the going concern value (“Teilwert”) is the central measurement of asset impairment since 1934. The conceptual weaknesses of the concept have set the future of the 80-year old
fiscal measurement tradition up for discussion. First, I shed light on the development of the accounting measurement concepts from Prussian Civil Code 1794 (ALR) to the German Income Tax Act 1934. Then, I analyse the main results of the current tax jurisdiction and draw a comparison to the German commercial law and the IFRS. I state that the creation of a common basis for measurement under commercial and tax law would be desirable, since the going concern value was understood as neither an
exception, nor as being subject to the whims of targeted tax accounting policies. The provision of a purely indicator-based impairment test by the IASB is also recommended.
Original languageEnglish
JournalCorporate Ownership & Control
Volume13
Issue number1CONT 7
Pages (from-to)756-768
Number of pages13
ISSN1727-9232
DOIs
Publication statusPublished - 01.01.2015

Bibliographical note

Publisher Copyright:
© 2015, Virtus Interpress. All rights reserved.

    Research areas

  • Management studies - Going Concern Value, Tax Accounting, Asset Impairment;, Fair Value, Cash Generating Units

DOI

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