Glossary entry (derived from question below)
German term or phrase:
Verpflichtungsüberhang
English translation:
excess obligation
Added to glossary by
nruddy
May 5, 2011 19:00
13 yrs ago
6 viewers *
German term
Verpflichtungsüberhang
German to English
Bus/Financial
Accounting
HGB notes
Has anyone found a reliable translation for this term in the context of executory contracts and provisions in accordance with section 249 HGB?
Context:
"Die Bildung von Drohverlustrückstellungen für schwebende Geschäfte (Derivate) erfolgt in Höhe des bestehenden Verpflichtungsüberhangs."
(later section on hedge accounting)
"Der ineffektive Teil des abgesicherten Risikos der Sicherungsbeziehung wird bei einem bestehenden Verpflichtungsüberhang imparitätisch durch die Bildung einer Drohverlustrückstellung erfasst."
IAS 37.68 (below) helped me understand the concept but I don't know what it should be called.
This Standard defines an onerous contract as a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.
Context:
"Die Bildung von Drohverlustrückstellungen für schwebende Geschäfte (Derivate) erfolgt in Höhe des bestehenden Verpflichtungsüberhangs."
(later section on hedge accounting)
"Der ineffektive Teil des abgesicherten Risikos der Sicherungsbeziehung wird bei einem bestehenden Verpflichtungsüberhang imparitätisch durch die Bildung einer Drohverlustrückstellung erfasst."
IAS 37.68 (below) helped me understand the concept but I don't know what it should be called.
This Standard defines an onerous contract as a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.
Proposed translations
(English)
| 4 +1 | excess obligation |
Ted Wozniak
|
Proposed translations
+1
13 mins
Ted Wozniak
United States
United States
Native in English
Specializes in field
United States
Bridging the Language GAAP-
Native in: English (Variant: US) 
Works in: German to English
Related KudoZ points
:
762
Selected
excess obligation
Example from my work
Aus einem schwebenden Geschäft ergibt sich ein Verlust, wenn der Wert der Leistungsverpflichtung des Bilanzierenden den Wert seines Gegenleistungsanspruchs übersteigt (Verpflichtungsüberhang).
An executory contract results in a loss if the value of a party's obligatory performance exceeds the value of that which it is to receive in exchange (excess obligation).
Aus einem schwebenden Geschäft ergibt sich ein Verlust, wenn der Wert der Leistungsverpflichtung des Bilanzierenden den Wert seines Gegenleistungsanspruchs übersteigt (Verpflichtungsüberhang).
An executory contract results in a loss if the value of a party's obligatory performance exceeds the value of that which it is to receive in exchange (excess obligation).
4 KudoZ points awarded for this answer.
Comment: "Thanks very much to both of you!"
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