Development and current criticism of asset impairment in German tax accounting

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Development and current criticism of asset impairment in German tax accounting. / Velte, Patrick.
In: Corporate Ownership & Control , Vol. 13, No. 1CONT 7, 01.01.2015, p. 756-768.

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@article{c64127642bde4060ae66b03f759c5215,
title = "Development and current criticism of asset impairment in German tax accounting",
abstract = "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. ",
keywords = "Management studies, Going Concern Value, Tax Accounting, Asset Impairment;, Fair Value, Cash Generating Units ",
author = "Patrick Velte",
note = "Publisher Copyright: {\textcopyright} 2015, Virtus Interpress. All rights reserved.",
year = "2015",
month = jan,
day = "1",
doi = "10.22495/cocv13i1c7p3",
language = "English",
volume = "13",
pages = "756--768",
journal = "Corporate Ownership & Control ",
issn = "1727-9232",
publisher = "Virtus Interpress",
number = "1CONT 7",

}

RIS

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 -

DOI