Depreciation option

According to the German Commercial Code (HGB), there are several options when valuing inventories:
Abschreibungen nach § 253 HGB, wonach der Ansatz eines niedrigeren Wertes als der sich aus dem strengen Lowest value principle ergebende Wert in zwei Fällen gestattet ist:

Section 253, Paragraph 3, Clause 3 of the German Commercial Code (HGB)
Cut-off date if this is necessary based on a reasonable commercial assessment.

§ 253 Abs. 4 HGB - There can also be depreciation to a lower value within the reasonable commercial
Assessment to be made.

The tax depreciation according to § 254 sentence 1 HGB. Depreciation can also be made in order to set assets of the current assets at the lower value, which is based on a depreciation only permissible under tax law. This regulation referred to the earlier import goods discount according to § 80 EStDV, which has been removed.

Da Importwaren besonders hohen Preisschwankungen unterliegen, ist ein Bewertungsabschlag auf Importwaren vorgesehen. Dadurch sollen die nach dem Balance sheet date auftretenden Preisschwankungen bereits im Bilanzansatz aufgefangen werden.
The retention option according to Section 253 (5) and Section 254 (2) of the German Commercial Code (HGB). Thereafter, the lower values can be retained, which resulted from the depreciation according to § 253 HGB and § 254 HGB, even if the reasons for this no longer exist. The retention option applies without restriction only to non-corporations. For corporations, the restricted retention option of Section 280 (2) of the German Commercial Code (HGB) applies.

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