What are the explicit costs for provisions

The evaluation of obligations in kind according to commercial and tax law

| Commercial and tax law contain independent, differing standards for the evaluation of obligations in kind. A uniform valuation is only possible for obligations to be fulfilled at short notice. Due to mandatory valuation regulations for long-term obligations in kind, the valuation reservation of Section 5 (6) EStG applies for tax purposes. Taking into account an order of the OFD Münster (13.7.12, S 2170a - 234 - St 12 - 33), this is reason enough to deal more intensively with the assessment of obligations in kind. |

1. What are obligations in kind?

Obligations in kind are a generic term for all obligations that are not to be fulfilled by paying a sum of money, but by providing a delivery, service or work (see Herrmann / Heuer / Raupach, § 6 EStG margin no. 1173). A characteristic is that own employees, material (including external services) or machines are used to fulfill the obligation (cf. Falterbaum / Bolk / Reiss / Kirchner, Buchführung und Bilanz, 21st edition 2010, 988).

The obligations in kind include, in particular, guarantee and warranty provisions, provisions for dismantling (including the removal of leased facilities), disposal and renovation obligations or recultivation provisions, provisions for year-end costs, the public-law obligation to store business documents or the obligation to take care of insurance contracts (see BFH July 19, 2011, XR 26/10).