Table of Contents
When valuing equity according to the German Commercial Code, a distinction must be made between:
The subscribed capital is to be valued in accordance with Section 283 of the German Commercial Code (HGB) at the nominal amount given on the reporting date. This regulation serves to preserve capital. Since a valuation with a value lower than the nominal amount is not permitted, there can be no net profit. This prevents parts of the share capital from being distributed to the shareholders.
The outstanding contributions to the capital can be treated differently (Section 272 (1) sentence 2 HGB):
If the outstanding deposits are shown as active (gross), there are no special features. The subscribed capital is to be shown with the total nominal amount.
In the case of passive disclosure, i.e. with open deduction of the unclaimed deposits in the previous column (net disclosure), the requested capital (Section 272, Paragraph 1, Clause 3 HGB) is the balance of the subscribed capital reported at nominal amount and the outstanding, not yet requested Deposits, which are also to be recognized at the nominal amount.
If the value of the outstanding, unclaimed deposits would have to be adjusted in view of the claims nature of the receivables, they will not be shown net.
- The reserves are items of the appropriation of profit and therefore cannot be valued.
- For the profit and Loss carryforward it also applies that an assessment is not possible. The statement of changes in equity is part of a complete IFRS financial statement.