Bilanzielle Kapitalerhaltung vs. Solvenztest Überlegungen zur Unternehmenserhaltung in der Internationalen Rechnungslegung (Balance Sheet Capital Preservation vs. Solvency Test Considerations for Companies in Maintaining the International Accounting)

Abstract

Capital Maintenance contains various approaches in trying to protect the equity and assets of a company. One of the biggest and substantial threats for companies are paper profits and the recognition of unrealized revenues. The predominant issue of paper profit has been a challenge for research in accounting since the beginning of the 20th century. The demand for balancing under IRFS-regulations to determine the Distributive Profit of companies, listed in the EU, has brought up the issue of paper profit once again. The purpose of this thesis is to examine the predominant issue of paper profits, analyzing concepts, which will allow companies to avoid unrealized revenues to be recognized as distributive profit. Furthermore a theoretical framework for a capital maintenance profit distribution within IRFS and European Accounting regulations is established.In the theoretical part of this thesis the predominant issue of paper profit is analyzed by the examination of theoretical concepts on capital maintenance and the determination of profit. The concepts are presented as subject of a critical assessment to help comprehend the qualifications needed in avoiding unrealized revenues to be recognized as distrib-utive profit. The empirical part of this thesis focuses on the study of the EU-Commission on capital maintenance and alternative concepts of profit distribution. The results and insights from the study are combined by applying a structured content analysis. The results are interpreted to deduce a possible capital maintaining framework for IFRS avoiding un-realized revenues to be distributed. In conclusion, it was found that capital maintenance and determination of profit is in accordance with the concept of nominal capital. The legal implementation is made by certain accounting and valuation regulations and statutory dividend restrictions. The current concept of capital maintenance proved to protected only partially against the distribution of unrealized profits. As a possible framework for capital maintaining IFRS profit distribution, the implantation of a dividend lock is proposed. The dividend lock is a sub income account within the profit and loss statement. It separates realized revenues from unrealized revenues. Furthermore a solvency test for companies would hold the management of a company legally responsible for the distributed amount of profit. The solvency test would strengthen the creditor protection and cause a rather cautious distribution of profit. The recommended framework would be in accordance with current EU law and could be implemented in a rather-simple-manner.