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Erfahrungsgedächtnis
Oct 2, 2020 16:44
3 yrs ago
42 viewers *
German term

liquiditätswirksam verbraucht

German to English Bus/Financial Accounting
2020 werden zudem die Restrukturierungsrückstellungen aus 2019 liquiditätswirksam verbraucht.

What would be your take on "liquiditätswirksam verbraucht" here?

Thanks.
Proposed translations (English)
4 +4 used/utilised through cash transactions
4 spent in cash
3 will be offset against liquid assets
3 used to ease the cash position
2 will be monetized
References
liquiditätswirksam = with an impact on liquidity
Change log

Oct 3, 2020 17:34: Adrian MM. changed "Language pair" from "German to English" to "English to German"

Oct 4, 2020 00:17: writeaway changed "Language pair" from "English to German" to "German to English"

Discussion

RobinB Oct 4, 2020:
These are "restructuring provisions" Rückstellungen/provisions are "liabilities of uncertain timing or amount" under both European national GAAPs (e.g. German GAAP) and IFRSs. They are non-cash items (like depreciation and amortisation charges), which is why it's specifically noted that they're being used for cash transactions ("liquiditätswirksam"), instead of e.g. merely being reversed to profit or loss without affecting the cash flow statement.
Klaus Beyer Oct 3, 2020:
I believe the "Rückstellungen", which probably are cash equivalents like commercial paper, debt obligations and other financial instruments are liquidated and turned into cash, i.e. being "monetized"

Proposed translations

+4
6 hrs
Selected

used/utilised through cash transactions

or the long way round: used/utilised through transactions recognised in the statement of cash flows/cash flow statement.

And please remember that Rückstellungen are "provisions", not accruals or reserves.
Peer comment(s):
agree writeaway
12 hrs
neutral Klaus Beyer : Lots of assumptions, text says nothing about cash transactions; instead, funds being used up
21 hrs
neutral philgoddard : I don't see how you arrive at this.
1 day 1 hr
agree Kim Metzger
1 day 2 hrs
agree Harald Moelzer (medical-translator)
2 days 6 hrs
agree Michael Bailey
9 days
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks to everyone for their input - all useful."
1 hr

spent in cash

In 2020 the accruals for restructuring 2019 will be spent in cash
Something went wrong...
4 hrs

will be monetized

the restructuring reserves for 2019 will be monetized in 2020.
Something went wrong...
2 days 21 hrs

will be offset against liquid assets

or liquid funds/cash
Something went wrong...
3 days 18 hrs

used to ease the cash position

The provisions are used in a way that affects the cash position or the liquidity. But not sure if it is a negative situation, in other words that it has a negative impact on liquidity. More context may help, and if positive, the right answer may even be something like "used in a liquidity-positive manner."

Given the reference to 2020 I think what is going on here is that they are using the provisions or reserves from 2019 to ease the cash position. So using the left over money from 2020 in that provision or reserve instead of using 2020 cash on hand.
Reference:

https://translate.google.com/#view=home&op=translate&sl=auto&tl=en&text=Restrukturierungsr%C3%BCckstellungen

https://www.linguee.com/english-german/search?source=auto&query=liquidit%C3%A4tswirksam+verbraucht

Something went wrong...

Reference comments

7 hrs
Reference:

liquiditätswirksam = with an impact on liquidity

Peer comments on this reference comment:
agree writeaway : ah, those were the dayz.
1 day 32 mins
:-)
Something went wrong...
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