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Financial report preparation support

In Germany, financial statements need to be prepared in German.

A tax accountant with extensive practical experience prepares and presents financial statements that are trusted by German financial institutions.

Frequently asked Questions

Frequently asked questions regarding the preparation of financial statements.

Q. What is tax effect accounting in Germany?

A. The following is the distinction between the German Commercial Financial Statement and the Tax Financial Statement with regards to inventory valuation method.

  • According to commercial law, first in, first out (FIFO), moving average, or last in, first out (LIFO) can be employed.

However, for tax purposes, only moving average or LIFO can be used as a valuation method.

  • Under the Commercial Code, there is an obligation to reflect a temporary or permanent decrease in value.

Alternatively, for tax purposes,
reduction in value can only be recorded if it is permanent.

If you have any questions, please do not hesitate to contact us.

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