The fixed valuation is a valuation simplification method that relates to the inventory. It is regulated in Section 240 (3) of the German Commercial Code. After that, capital goods as well as raw materials, auxiliary materials and supplies can be used
but not unfinished goods, finished goods, goods - are recognized with a constant amount and a constant value, if
- they are replaced regularly
- their value is of secondary importance for the company
- the inventory recorded in the fixed value is subject to only minor changes in terms of size, value and composition.
The fixed valuation, which is also tax-permissible under the conditions mentioned, serves to simplify matters. At the same time, it has a balancing effect with regard to price increases. Because when prices rise - as with the Lifo procedure - the access is offset against the increased replacement prices. The fact that this effect is usually inevitably coupled with the purpose of simplification does not prevent the use of a fixed value.
Balance sheet date
Every third Balance sheet date As a rule, an inventory must be made to determine whether the previous value and the previous amount are still justified. If the value determined for this balance sheet date exceeds the previous fixed value by more than 10%. H., the determined value is decisive as the new fixed value. If the determined value is lower than the previous fixed value, the determined value can be used as the new fixed value. If the determined value does not exceed the previous fixed value by more than 10%. H., the previous fixed value can be retained.
The IFRS regulations do not provide any special regulations for fixed valuation, so application according to IFRS is disputed.