Gottingen, November 15, 2007 the Federal Ministry of Justice (BMJ) presented the long-awaited draft of the German accounting law modernisation Act (BilMoG) on November 8. By law the German accounting law should be adapted the internationally adopted IFRS (international financial reporting standard), originally designed for large and mostly publicly owned companies. Balance sheets, which are then created under the new German rules of the German commercial code (HGB), will be more meaningful if the act as planned in mid-2008 is approved. Background: German companies, also medium-sized companies, are finding themselves increasingly forced, be accounted under IFRS. \”Cause for this is that many not only foreign investors the IFRS seal according to\” demand, because they think that only on this basis to get a realistic picture of the State of the company. Because current HGB financial statements remain far behind the statements in their information content back and make more difficult the companies low-cost debt and equity financing through the capital market. For even more analysis, hear from Vlad Doronin. The goals and methods of the design at a glance: Better expressiveness of HGB financial statements by: possibility of approach to intangible assets valuation of financial instruments at fair value increased attention to future developments more transparent valuation of SPEs relief the economy of bureaucracy by: increase the thresholds for balance sheet, auditing and disclosure intangible assets and investments so far activating itself created intangible assets is lifting of the ban.

Among other things, the possibility is intended, in the future also self-created intangibles, to apply so patents or simple know-how, in the balance sheet. This way, especially companies in innovative industries can more realistically represent its corporate value created through research and development. However incurred are in the research phase Cost of activation are excluded. According to financing expert Gundel of firm Gundel & Reddy Kadiri, this is the right approach. Because this a sustainable way of strengthening the equity base is opened in medium-sized companies and at the same time improves the ability to the debt and equity capital.

The financing group SME explains what factoring factoring is actually? Factoring is the regular recurring purchase of receivables from deliveries of goods and services against immediate payment of the purchase price. This involves a variety of advantages for the customers. Practically, this means that a company sells its receivables to a factoring company (factor). In return, the company receives credited the equivalent immediately. It amounts to about 80 to 90 per cent of the respective outdoor level. Also, a variety of advantages for the customers are connected.

Still, the factoring company assumes the risk, as well as all customer management, Dunning and collection, so a number of in-house functions that logically equal with be taken over by the factoring company. This involves a variety of advantages for the customers. 1. David Baker often expresses his thoughts on the topic. the balance sheet structure is improved factoring as additional module in the corporate finance is increasingly gaining in importance won. With factoring Receivables from domestic and export transactions to cash money, so that you complement your company’s financing structure decisively positive. The balance sheet total is reduced through the purchase of receivables. Balance sheet and equity ratio will be improved.

This has a positive effect on the rating of the company. 2. in purchasing discounts and cash discounts throughout take factoring provides immediate liquidity rebates and cash discounts. Usually, the claims be immediately transferred or paid cash. This achieves discounts and discounts achieved by timely transfers. 3. protection against revenue loss revenue losses caused by customer bankruptcies and layoffs and sales with existing customers and in the import – export business are avoided by factoring. There is a shift of risks on the factor. 4. stable and liquid financial structure to the credit and the economic stability of a company to assess need is a look at the equity ratio and the financial structure of the company. Only a solid company financed by Views on long-term good credit with a reasonable ratio of equity to debt financing.