Glossary · Austria and Germany
Write-downs and recoverability
A write-down reduces the carrying amount of a receivable. Recoverability concerns the economic value expected from it. These accounting questions differ from whether the underlying claim legally exists and can still be pursued.
Distinguish the concepts
A EUR 5,000 invoice is not EUR 5,000 in available cash simply because it has been recorded. Payment problems or a substantiated dispute may affect valuation. An accounting adjustment does not itself waive the debt, while an enforceable title does not necessarily make a doubtful claim fully recoverable. Keep legal enforceability, expected receipts and the carrying amount separate in your records.
Jurisdiction and scope
Austrian and German commercial accounting rules require the relevant valuation circumstances to be considered. Tax treatment and any VAT adjustment require additional assessment. A collection status does not replace this work. Record the valuation date, indications of loss and subsequent new information. A provider’s general recovery statistics do not establish the value of a specific receivable.
Illustrative business example
A business writes down an overdue invoice while recovery work continues. A partial payment later arrives. Accounts reconciles the receipt with the carrying amount, while the case record retains the remaining legal balance. This illustrative case shows why closing a portal case, writing down an asset and posting a bank receipt should not share one undifferentiated status.
Common questions
Does a write-down release the debtor?
An accounting entry alone is not a release agreement. Check for a separate agreement or other reason why the obligation ended.
Does a title establish full recoverability?
It may enable enforcement but does not establish available assets or future receipts.
What evidence should accounts retain?
Payment history, objections, procedural developments, reliable loss indicators and the valuation date support the separate accounting and tax assessment.
Related topics
Sources and basis
- Deutschland: Bewertung von Vermögensgegenständen
- Österreich: Bewertung des Umlaufvermögens
- Deutschland: BGB 397
Content reviewed on 23 September 2026. Procedural information and our contractual terms are separate foundations. The individual case remains decisive.
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