Development and current criticism of asset impairment in German tax accounting
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In: Corporate Ownership & Control , Vol. 13, No. 1CONT 7, 01.01.2015, p. 756-768.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Development and current criticism of asset impairment in German tax accounting
AU - Velte, Patrick
N1 - Publisher Copyright: © 2015, Virtus Interpress. All rights reserved.
PY - 2015/1/1
Y1 - 2015/1/1
N2 - 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.
AB - 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.
KW - Management studies
KW - Going Concern Value
KW - Tax Accounting
KW - Asset Impairment;
KW - Fair Value
KW - Cash Generating Units
UR - http://www.scopus.com/inward/record.url?scp=84947248560&partnerID=8YFLogxK
U2 - 10.22495/cocv13i1c7p3
DO - 10.22495/cocv13i1c7p3
M3 - Journal articles
VL - 13
SP - 756
EP - 768
JO - Corporate Ownership & Control
JF - Corporate Ownership & Control
SN - 1727-9232
IS - 1CONT 7
ER -