wegen untergeordneter Bedeutung

English translation: due to insignificance

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:wegen untergeordneter Bedeutung
English translation:due to insignificance
Entered by: Languageman

20:02 Oct 19, 2006
German to English translations [PRO]
Bus/Financial - Accounting / Consolidated financial statement
German term or phrase: wegen untergeordneter Bedeutung
This appears in the notes to the consolidated financial statement in the annual report of a large German group of companies. This is placed as a footnote to all the companies that appear in the list of "nicht konsolidierte Tochterunternehmen".
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Verzicht auf Konsolidierung wegen untergeordneter Bedeutung gemäß § 296 Abs. 2 HGB
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Seems quite a rare phrase, at least in Google-land. I'm guessing they mean the company isn't significant enough to merit inclusion. But how best to phrase that in accounting jargon?

TIA for your ideas.

Stephen
Languageman
United Kingdom
Local time: 08:44
due to insignificance
Explanation:
Actually I think this is pretty common, though the wording may vary.

For your specific sentence, I'd say:

"Not included in the consolidated financial statements due to insignificance in accordance with section 296(2) of the HGB"

Section 296(2) of the HGB reads:

(2) Ein Tochterunternehmen braucht in den Konzernabschluß nicht einbezogen zu werden, wenn es für die Verpflichtung, ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage des Konzerns zu ermitteln, von untergeordneter Bedeutung ist. Entsprechen mehrere Tochterunternehmen der Voraussetzung des Satzes 1, so sind diese Unternehmen in den Konzernabschluß einzubeziehen, wenn sie zusammen nicht von untergeordneter Bedeutung sind.

(2) A subsidiary need not be included in the consolidated financial statements if it is not significant in relation to the requirement to present a true and fair view of the net assets, financial position and results of operations of the group. If several subsidiaries meet the requirement of sentence 1 above, the companies shall be included in the consolidated financial statements if they are collectively not insignificant.

(from: Deutsches Bilanzrecht/German Accounting Legislation, 4th edition, IDW-Verlag 2006)
Selected response from:

RobinB
United States
Local time: 03:44
Grading comment
Thanks everyone who contributed, I'm convinced!
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +7due to insignificance
RobinB
4given the /due to . subordinated significance
swisstell
3 -1not important enought
clyx
1 -1due to its secondary significance
Meturgan


Discussion entries: 1





  

Answers


17 mins   confidence: Answerer confidence 5/5 peer agreement (net): +7
due to insignificance


Explanation:
Actually I think this is pretty common, though the wording may vary.

For your specific sentence, I'd say:

"Not included in the consolidated financial statements due to insignificance in accordance with section 296(2) of the HGB"

Section 296(2) of the HGB reads:

(2) Ein Tochterunternehmen braucht in den Konzernabschluß nicht einbezogen zu werden, wenn es für die Verpflichtung, ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage des Konzerns zu ermitteln, von untergeordneter Bedeutung ist. Entsprechen mehrere Tochterunternehmen der Voraussetzung des Satzes 1, so sind diese Unternehmen in den Konzernabschluß einzubeziehen, wenn sie zusammen nicht von untergeordneter Bedeutung sind.

(2) A subsidiary need not be included in the consolidated financial statements if it is not significant in relation to the requirement to present a true and fair view of the net assets, financial position and results of operations of the group. If several subsidiaries meet the requirement of sentence 1 above, the companies shall be included in the consolidated financial statements if they are collectively not insignificant.

(from: Deutsches Bilanzrecht/German Accounting Legislation, 4th edition, IDW-Verlag 2006)

RobinB
United States
Local time: 03:44
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 993
Grading comment
Thanks everyone who contributed, I'm convinced!

Peer comments on this answer (and responses from the answerer)
agree  clyx
7 mins

agree  Alison Schwitzgebel: yup// em, that book you're quoting - who translated it?
19 mins
  -> Er, good question :-) But I *don't* get any royalties, the whole project was subsidised by PwC and F&B.

agree  Daina Jauntirans: Yup - you posted as I was pondering an explanation - yours says it all
1 hr
  -> I suppose I have the advantage of having "the book" in PDF format...

agree  Raghunathan Rajagopalan: if it is not considered significant for purpose of article (in relation to article) .....
4 hrs
  -> Please remember that a Paragraf (§) is a "section" in English, not an "article.

agree  René Laszlo
9 hrs

agree  Steffen Walter: I'm just wondering if we could use "non-materiality" here. Would that be essentially the same thing? // True, thank you for the feedback :-)
10 hrs
  -> It would have to be "lack of materiality". However, I think there's as much a difference in English as there is between Bedeutung and Wesentlichkeit in German :-)

agree  Julia Lipeles
21 hrs
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19 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): -1
not important enought


Explanation:
You are right.

Verzicht auf Konsoldierung means that they refuse the consolidation (to fund the smal ones) due to the fact that they are not significant enough. Don't think it's a special accounting term, but more a very descrete one for the negative meaning.

Hope you find a nice English description

clyx
Spain
Native speaker of: Native in GermanGerman, Native in RomanianRomanian

Peer comments on this answer (and responses from the answerer)
disagree  Alison Schwitzgebel: not accounting terminology.....
18 mins
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20 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
given the /due to . subordinated significance


Explanation:
my take

swisstell
Italy
Local time: 09:44
Works in field
Native speaker of: German
PRO pts in category: 67
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1 hr   confidence: Answerer confidence 1/5Answerer confidence 1/5 peer agreement (net): -1
due to its secondary significance


Explanation:
linked to the density of contamination by strontium (90Sr) and plutonium (239Pu); this parameter is not analysed here due to its secondary significance. ...
www.webiodine.com/dl/engl/html/report/ChernobylReport-19-11... - 884k

Meturgan
Hungary
Local time: 09:44

Peer comments on this answer (and responses from the answerer)
disagree  Daina Jauntirans: Please look at the subject category - this is accounting
14 mins
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