Maximum value principle

Das Höchstwertprinzip ist ein Bewertungsverfahren aus dem Rechnungswesen und ein Grundsatz ordnungsmäßiger Buchführung. Das Gegenstück zum Höchstwertprinzip auf der Aktivseite einer Bilanz ist das Lowest value principle.

Definition / explanation

The maximum value principle is a procedure that is used in the valuation of debt values. In a company, the assets are classified according to the so-called Lowest value principle evaluate. The maximum value principle is used for debt values. If there are several values to choose from, the highest value is shown in the balance sheet.

The debts with the highest repayment value are used due to the possible excessive profit distribution. This prevents a worst-case scenario and the company's liquidity is maintained.

Example for currency liabilities - Exchange rate fluctuations can result in large differences. The daily value of the respective currency is compared with the market value when the liability was entered. The higher value is then applied to the annual financial statements.

If the current daily rate is EUR 2.00 and the market value on the day of admission is EUR 1.50, the maximum value principle must be applied. The liability is therefore set at EUR 2.00.


  • The maximum value principle is an evaluation method from accounting
  • The counterpart to the highest value principle is the lowest value principle
  • Debt values are shown with the highest value in the balance sheet as soon as different values are available
Was the explanation to "Maximum value principle"Helpful? Rate now:

Further explanations on financial accounting