The annual financial statements represent the economic situation at the end of a company’s financial year. This is why it forms an important basis for essential entrepreneurial decisions. The term ‘annual financial statements’ includes the balance sheet and the profit and loss account. In addition, in the case of corporations under § 264 HGB, an annex has to be prepared. In medium-sized and large corporations, a management report must also be drawn up, which is not formally part of the annual accounts. In addition to the corporations, merchants are also responsible for drawing up an annual financial statement if the requirements according to § 241a HGB are exceeded.

Trade balance

First of all, every merchant within the meaning of the Commercial Code (HGB) is obliged to draw up a so-called trade balance sheet. Kaufmann are registered merchants (e.K.), personal trading companies (oHG, KG and GmbH & Co. KG) and corporations (AG, GmbH, UG). This balance sheet must be prepared in accordance with the accounting regulations of §§ 238 et seq. In addition, the trade balance is generally – in reduced form – published online at the Bundesanzeiger.

Tax balance

In addition to the balance sheet formed according to commercial law regulations (trade balance), there is the tax balance derived from the trade balance and adapted to the tax regulations. While the trade balance is deposited or disclosed with the Federal Gazette depending on the obligation, the tax balance serves to determine the tax bases for corporate tax, trade tax or income tax. However, the tax balance is transmitted in electronic form to the tax office in accordance with the legal requirements. Of course, it is not visible to third parties.

In the case of partnerships, a special balance sheet may also be required for each shareholder. Such a special balance sheet then reflects the special assets of the co-entrepreneurs (=partners) in partnerships. It serves to account for the property of the co-entrepreneur, which, however, are used for operational purposes or also include special remuneration or rental income within the entrepreneurship. Of course, the special balance sheet must be drawn up separately for each co-entrepreneur.

Additional balance sheet for conversion and acquisition

If a client acquires an interest in a partnership or converts an existing company into a partnership, a so-called supplementary balance sheet is regularly drawn up. This is especially true if the company is purchased or converted to values that deviate from the book values. Because then the supplementary balance sheet records the acquisition costs for each shareholder individually.

Occasional balance sheets

In addition, balance sheets shall be drawn up on the occasion of certain special circumstances and events. These include, for example:

conversion balance

As a result of a conversion, the converted company is responsible for preparing a conversion balance sheet. The commercial conversion balance sheet shall be drawn up at the conversion date and attached to the application for registration of the conversion decision in the commercial register.

Takeover balance

The acquiring company resulting from the conversion is obliged to draw up a commercial takeover balance sheet. It takes over the assets of the transferred entity. So the takeover balance sheet documents these acquired assets.

Recovery balance

The restructuring balance sheet is prepared on the occasion of a restructuring of the company. For this purpose, it serves to take organisational and financial measures to restore performance and prevent insolvency or over-indebtedness.

liquidation balance sheet

The liquidation balance sheet serves to wind up a liquidation and comprises a liquidation opening balance sheet and a liquidation closing balance sheet. However, if the resolution is extended by several years, the company undertakes to draw up interim liquidation balance sheets.

Merger balance

The merger balance, also called the merger balance, is created in a merger. For this purpose, it shall recognise all assets and liabilities of the combined companies.

Controversy Record

This form of special balance sheet is drawn up when a shareholder leaves under the year. It is not bound by any commercial or tax provisions. Instead, it is an internal balance sheet for shareholders. Therefore, it serves as a basis for the payment of the departing shareholder.

Opening balance

The opening balance sheet is used to document assets and liabilities when a company commences operations. This is an important testimony.

Delimitation balance

The deferral balance sheet is an additional balance sheet prepared in the event of a business sale. It provides an overview of the current balance sheet state of the divested company.