Accounting regulations

Accounting regulations are statutory regulations that determine whether and how economic items are to be recognised, reported and measured in a company's balance sheet.

Context and area of application:
In the context of commercial accounting - in particular in accordance with the German Commercial Code (HGB)) - accounting regulations govern the requirements for the inclusion of assets and liabilities in the balance sheet. They are relevant for corporations as well as for sole proprietorships and partnerships. For SAP-related environments such as SAP Business One, they form the basis for automated postings, valuation logic and correct annual financial statements.

Core components of the accounting regulations:

Ability to recognise:
In accordance with Section 246 (1) HGB, all assets and liabilities must be recognised (Completeness requirement).
- Assets: economic benefit, independent realisability and value.
- Debt: External obligation, economic burden, quantifiability.
Economic ownership:
The decisive factor is not always the legal, but the Economic ownership (Section 246 (1) sentence 2 HGB). The beneficial owner recognises the asset in the balance sheet even if it is not legally in possession. This applies to leasing, transfer by way of security or retention of title, among other things.
Allocation to business assets:
A distinction must be made between sole traders and partnerships in particular:
- Necessary business assets
- Necessary private assets
- Deliberate business assets
  This distinction influences whether an asset is recognised in the balance sheet.

Differentiation from related terms:
Accounting regulations relate to the Approach of facts (whether they may be recognised in the balance sheet). This is to be distinguished from the ID card (where they are in the balance sheet appear) and the Evaluation (how they are recognised). Recognition and measurement are only relevant once the approach has been clarified.

Example:
A company leases a machine. Legally, it remains the property of the lessor. Economically, however, the lessee uses the machine for the entire term. Due to the economic ownership, the lessee must recognise the machine in its balance sheet.