Ask a tax advisor on the topic of Annual financial statement

Questions about the annual financial statements

January 17, 2015 | 35,00 EUR | answered by Ralph J. Schnaars

1. Question about value-added tax
In December 2013, a newly founded complementarity company issued a (single) invoice showing a value-added tax of €13.53. At the beginning of 2014, the annual report was submitted. Due to the restriction to whole numbers in the input tax procedure, an amount of €13.49 was due and paid in 2014.

In the program-controlled annual financial statements, the input tax of €13.53 was correctly carried forward to account 1790 (SKR03). Due to the payment of the due input tax of €13.49, a remaining amount of €0.04 remained on the account, which is now shown as other liabilities in the balance sheet. How should this amount be dealt with in the annual financial statements?

2. Question about booking of precious metals:
a) Since the share capital of the company is currently not needed, is not expected to be needed for a very long time, and is not expected to increase in value on bank accounts, I decided to purchase precious metals. I may sell these in 10-15 years if necessary. In the accounting, I opened an account 0526 "Coins and Bars (raw materials)" (SKR03) under securities of fixed assets. If the assessment is that the booking is completely wrong, please indicate where it should be correctly allocated (account?).

b) Should a revaluation of the precious metals be made over the years, or is it sufficient to pay tax on any profit from a sale?

3. Question about the company's profits:
The profits are intended to remain within the company. How should this be handled from an accounting perspective, and should anything be booked in this regard?

Thank you for answering my questions.

Ralph J. Schnaars

Dear inquirer,

I would like to answer your questions briefly and succinctly as follows:

1. The rounding difference in the value-added tax of 0.04 EUR should be booked in SKR 03 under account 2700 (other income).

2a. Is correct so far.
2b. Revaluation or determination of profit is only done at the time of sale, as it concerns fixed assets.

3. The annual surpluses always accumulate at the beginning of the following year on the balance sheet profit account.

I hope I could assist you with your considerations.

Kind regards,

Ralph J. Schnaars

STWB Tax Consulting Company
Direct contact +49 (0)171 525 20 42
Email mail @ stwb-steuer.de