Valuation of securities

Securities are documents that certify a private right in such a way that its exercise is linked to the possession of the paper. With regard to the valuation of securities, the commercial law and the tax law perspective must be taken into account:

• The strict rule applies to securities classified as current assets Lowest value principle (Section 253 (3) HGB), e.g. B. for shares in affiliated companies or own shares. There are two options for the approach:

- As far as proof of identity is possible, which is kept by means of security number registers, the security actually sold is deemed to have been sold (individual valuation).

- If proof of identity cannot be provided, the average rating applies, ie it must not be rated according to Lifo or Fifo.

In the event of falling prices, the average valuation is replaced by the valuation at the lower partial value, at least in the case of asset equalization according to Section 5 EStG.

Are the acquisition cost if individual or average values of securities are higher than the stock exchange price, the lower stock exchange price is to be applied (Section 253 (3) sentence 1 HGB). There are tax depreciations to the lower partial value.

• For securities held as fixed assets, e. B. Shares and participation certificates, the moderate lower value principle applies, ie if the stock exchange price or market price on the reporting date is below the acquisition cost, it can be applied.

For the valuation in the tax balance sheet, according to Section 6 (1) No. 2 EStG, the approach at acquisition cost or at the lower partial value is prescribed.

Was the explanation to "Valuation of securities"Helpful? Rate now:

More explanations too