Making accounting and valuation decisions is a core element in the preparation of consolidated financial statements and annual financial statements in accounting. Even if these activities are outsourced to a service provider, the management continues to be responsible for the correctness and completeness of the information contained in the annual financial statements in the accounting department. It is therefore important to rely on an experienced partner who also observes the high professional requirements of the auditing profession (in particular IDW S 7) when preparing annual financial statements, especially when passing on annual financial statements in accounting to financing banks, investors or others stakeholders: quality creates trust.
There are often other occasions, such as the admission of new investors in order to increase share capital and equity or the sale of shares, which are associated with the preparation of annual financial statements. Particular challenges then arise from the application of internationally understandable rules (IFRS), the transaction-related factor "time" and the purchase price relevance of the annual financial statements and the associated guarantees.
Especially with corporate or financing transactions, there are special requirements for the accounting of a company and the annual financial statements in accounting. Potential buyers expect, among other things, balance sheets with plausibility assessments or other comprehensive assessments, in order to include the value of the necessary business assets or obligations to be redeemed, such as loans, when determining the purchase price. Since these transaction-related conclusions are relevant to the purchase price, special attention must be paid to them as a result of possible guarantees agreed in the purchase contract.
In addition, lenders also expect timely and reliable reporting on all aspects of the annual audit. In addition to fulfilling purely regulatory obligations (e.g. Section 18 KWG), the data should be prepared in such a way that it offers added value for the recipient. In addition to a pro-forma consolidation at the level of the borrower unit or the integration of the agreed covenant key figures, other accounting instruments (e.g. IFRS) can also be expedient here depending on the industry.
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