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proALPHA Information

What’s New in Accounting for 2017?

Table of Contents

2016 proALPHA Business Solutions GmbH

proALPHA Information - What's New in Accounting for 2017.docx - 22.12.2016

Baumeister, Wilhelm

Page 1 (21)

Table of Contents

1. Introduction ................................................................................................................................................. 3

2. Germany ............................................................................................................................................. 4

2.1 Sales Tax ............................................................................................................................................................ 4

2.2 New ID 23 in the Advance Sales Tax Return ....................................................................................... 4

2.3 New ID 123 in the Sales Tax Return ....................................................................................................... 5

2.4 German BilRUG (Law to Implement Accounting Directives) ........................................................ 6

2.5 Additional Information Required in Fixed Asset Analysis ............................................................. 8

3. Austria ................................................................................................................................................ 10

3.1 RÄG (Law on Changes in Accounting) ................................................................................................10

3.2 Balancing and Valuation ...........................................................................................................................10

3.3 Balance Sheet Structure ............................................................................................................................11

3.4 Valuation Rates for Fixed Assets ...........................................................................................................12

3.4.1 Changes in Depreciation According to Section 226, Paragraph 1, Line 5 of UGB ............12

3.4.2 Capitalized Interest on Borrowings According to Section 226, Paragraph 1, Line 6 of

UGB ...................................................................................................................................................................12

4. Switzerland ...................................................................................................................................... 14

4.1 Payment Transactions (ISO 20022) .......................................................................................................14

4.1.1 General Information ...................................................................................................................................14

4.1.2 Schedule ..........................................................................................................................................................14

4.1.3 Further Information ....................................................................................................................................15

5. Italy ...................................................................................................................................................... 16

5.1 Spesometro ....................................................................................................................................................16

5.2 Investment Promotion through Increased Depreciation Allowance .......................................16

6. Hungary ............................................................................................................................................ 18

6.1 Sales Tax ..........................................................................................................................................................18

6.2 Exporting Accounts Receivable ..............................................................................................................18

6.3 Real-Time Invoice Data Supply ..............................................................................................................19

Introduction



Baumeister, Wilhelm

Page 2 (21)

7. Poland ............................................................................................................................................... 20

7.1 Standard Audit Files (SAF) .......................................................................................................................20

7.2 SAF for Large Companies .........................................................................................................................20

7.3 SAF for Small Companies .........................................................................................................................20

7.4 Foreign Companies .....................................................................................................................................20

8. Disclaimer ................................................................................................................................................... 21

Introduction



Baumeister, Wilhelm

Page 3 (21)

1. Introduction

This document provides information about relevant changes in accounting which take effect as of

2017. Each chapter deals with a different country.

The following countries are concerned:

Germany

Austria

Switzerland

Italy

Hungary

Poland

"In this world nothing can be said to be certain, except death

and taxes."

Benjamin Franklin, US Politician

and Scientist

* January 17, 1706 † April 17, 1790

Germany



Baumeister, Wilhelm

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2. Germany

2.1 Sales Tax

Since 2005, sales tax returns and advance sales tax returns have to be processed electronically with

ELSTER. Software providers can automatically create these returns in the respective system by using

the Elster Rich Client (EriC) library. Structural modifications have been made here, which are

contained in the year-end update in proALPHA. Installing the update is a requirement to

electronically transmit the advance sales tax return and VAT information exchange report for 2017

and the sales tax return for 2016.

2.2 New ID 23 in the Advance Sales Tax Return

To modernize the taxation system, German authorities have decided to give taxpayers the

possibility to include additional or different information in tax returns. "1" has to be entered in line

75 (ID 23) for this purpose. This line is shown in the image below:

The information has to be provided on a separate sheet with the title "Ergänzende Angaben zur

Steueranmeldung" ("Additional information on the tax return").

Germany



Baumeister, Wilhelm

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What you need to do in proALPHA to include additional information:

Set up the new ID 23 for sales tax and enter the respective period and a remark text.

The "Tax" and "Sales" radio buttons can be ignored.

When the advance sales tax return is transferred via Elster, the entry "1" for the ID 23 and

the text are automatically transmitted.

Note: These data are not displayed in a print preview.

2.3 New ID 123 in the Sales Tax Return

The changes described in section 2.2 also apply to sales tax returns as of the report period 2017.

Germany



Baumeister, Wilhelm

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2.4 German BilRUG (Law to Implement Accounting Directives)

The EU directive 2013/34/EU was implemented in German law with BilRUG on July 17, 2015. BilRUG

is a major change to commercial laws and part of the initiative to harmonize the European legal

framework by making annual reports and financial statements provided by company groups

comparable throughout Europe. BilRUG has a significant impact on balancing and reporting. The

changes apply to annual reports after December 31, 2015, and have three major effects:

Monetary threshold values are increased, and sales revenues are redefined.

Various documentation and disclosure requirements will be specified more clearly and

extended.

Corporate disclosure will include a report on payments to authorities.

For individual financial statements, the threshold values of size classes for corporations will be

increased. The following table shows the new thresholds as per section 267 of German HGB:

Size Classes for

Corporations

Balance Sheet

Total €k Sales Revenues €k

Number of

Employees

Previous Now Previous Now Previous Now

Smallest 350 350 700 700 10 10

Small 4.840 6.000 9.680 12.000 50 50

Medium 19.250 20.000 38.500 40.000 250 250

Large >19,250 >20,000 >38,500 >40,000 >250 >250

As before, the data of two successive fiscal years are required to define the size class. Two out of

three features have to apply (section 267, paragraph 4 of German HGB). Initially, companies were to

be given the right to choose whether they wanted to apply the new size classes to their commercial

annual reports as of 2014 retrospectively. However, this would have caused problems with the e-

balance, which is why this right of choice was not given.

While the new thresholds for corporations are likely to have only little effect in practice, the

redefinition of sales revenues presents a major challenge: Section 277, paragraph 1 of the new

version of German HGB now stipulates the following according to German BilRUG:

The following have to be classified as sales revenues: revenues from

selling, renting and leasing products as well as from services provided by

the corporation after revenue reductions, sales tax and other tax directly

related to sales have been deducted.

Germany



Baumeister, Wilhelm

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As a result, deliveries and services rendered are no longer classified as "ordinary business".

According to the new definition, the following business transactions belong to sales revenues:

Sale of products (fixed assets excluded other operating income)

Earnings from rentals and leases

Provision of services

The structure of the profit and loss statement according to section 275 of German HGB will also be

changed. The items of extraordinary earnings and extraordinary expenses as well as

extraordinary income will be removed.

P&L Structure - Old Version P&L Structure - New Version

13. Interest and Similar Expenses 13. Interest and Similar Expenses

14. Income of Ordinary Activities

15. Extraordinary Earnings

16. Extraordinary Expenses

17. Extraordinary Income 14. Taxes on Income

18. Taxes on Income 15. After-Tax Income

19. Miscellaneous Taxes 16. Miscellaneous Taxes

20. Annual Surplus/Annual Deficit 17. Annual Surplus/Annual Deficit

What you need to do in proALPHA:

Set up new revenue accounts for the accounts used so far for extraordinary expenses and

earnings.

Alternatively: Rename the account descriptions used so far.

Define new analyses and assign the new revenue accounts to the respective analyses (P&L,

MgA, etc.)

Alternatively: Regroup the revenue accounts used so far in new analyses for comparisons to

previous years.

The law also places new demands on larger companies with respect to reporting and notes to

financial statements. To comply with BilRUG, several steps need to be taken. The most important

changes are listed in the following:

The currency conversion as per section 284, paragraph 2, number 2 of German HGB no

longer needs to be specified.

Germany



Baumeister, Wilhelm

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Sales revenues have to be divided by activities and geographical markets if these differ

greatly with respect to the organization of selling, renting and leasing products and of

providing services by the corporation (section 285, number 4 of the new version of German

HGB).

Taxes on extraordinary income do not have to be specified (section 285, number 6 of

German HGB).

The period over which purchased goodwill is depreciated has to be explained (section 285,

number 13 of the new version of German HGB).

In addition to the data on deferred taxes provided so far, the deferred tax balances at the

end of the fiscal year have to be specified as well as the changes made to these balances in

the balance sheet during the fiscal year if the balance sheet involves deferred tax liabilities

(section 285, number 30 of the new version of German HGB).

The amount and the type of extraordinary revenues and expenses have to be specified and

explained, provided they are not of minor importance (section 285, number 31 of the new

version of German HGB).

Explications of the amount and type of individual expense and revenue items which belong

to another fiscal year have to be specified, provided the amounts are not of minor

importance (section 285, number 32 of the new version of German HGB).

2.5 Additional Information Required in Fixed Asset Analysis

In addition to the data provided up to now, changes in depreciation related to acquisitions,

disposals and transfer postings have to be specified as an amount. Moreover, it has to be specified

for each fixed asset how interest for outside capital was included in the manufacturing costs of the

fiscal year (section 284, paragraph 3 of the new version of German HGB).

The Institute of Public Auditors in Germany IDW has published a statement on use cases of BilRUG

(IDW BilRUG 01-2016) according to which additional information has to be entered in the fixed

asset analysis in exceptional cases only, e.g., in case of mergers or a book value carryover as part of

a conversion according to section 24 of German UmwG.

Germany



Baumeister, Wilhelm

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If manufacturing costs include interest on borrowings, they will be mapped as a secondary asset in

fixed asset accounting. Proceed as shown in the example below:

In the fixed asset analysis, mandatory information about interest on borrowings is displayed in a

separate line:

Fixed asset master files of interest on borrowings

(Fixed asset number 4715_01 = Secondary asset)

Fixed asset master files: self-constructed building

(Fixed asset number 4715_00 = Main asset)

Austria



Baumeister, Wilhelm

Page 10 (21)

3. Austria

3.1 RÄG (Law on Changes in Accounting)

The directive 2013/34/EU of the European Parliament and Council from June 26, 2013, on annual

reports, consolidated reports and related reports by companies of specific legal forms was

implemented in Austrian law with RÄG, just like BilRUG in Germany. RÄG entails changes to the

current Austrian Commercial Code UGB. It has to be applied for the first time to fiscal years starting

after December 31, 2015 (in case of calendar years: as of the annual report on December 12, 2016;

in case of deviating fiscal years: annual reports as of 2016/2017). It is not to be applied earlier

(section 906, paragraph 28 of Austrian UGB).

The following goals are to be achieved with RÄG:

Relieving the pressure on small companies

Creating clear structures

Making annual reports comparable

Protecting users' basic needs, especially by providing required information on accounting

principles

Increasing the transparency in companies

The aspects relevant to accounting are described in detail in the following:

3.2 Balancing and Valuation

RÄG codifies the following generally accepted accounting principles:

Principle of economic substance

When business transactions are entered in the balance sheet and disclosed, their economic

substance has to be taken into consideration.

Principle of materiality

Disclosure requirements do not have to be fulfilled if items are immaterial.

Principle of reliable estimation

Estimations are to be based on thorough assessments. Values gained from experience that

can be determined statistically and affect similar matters are to be taken into consideration,

too. This is to help predict the creation of flat reserves and flat value corrections so that

they can be accepted for tax purposes.

Principle of continuity

This principle now also applies to balancing and valuation methods.

Deviations from these and other GAAP are allowed in exceptional cases only. These deviations have

to be specified in the appendix and justified. Their effect on the company's assets, financial

situation and income has to be documented. Companies outside of this scope, especially specific

partnerships and sole proprietors, do not have to enter additional information.

Austria



Baumeister, Wilhelm

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3.3 Balance Sheet Structure

RÄG entails the modification of the balance sheet structure according to section 224 of Austrian

UGB. Receivables and liabilities whose remaining time exceeds one year now also have to be

disclosed. Detailed information can be found in section 225, paragraphs 3 and 6 of Austrian UGB:

Paragraph 3: Receivables whose remaining time exceeds one year have

to be specified for each separate item on the balance sheet.

Paragraph 6: Liabilities with a remaining time of up to one year and

liabilities with a remaining time of more than one year have to be

specified for the items C1 to 8 in separate and consolidated form.


Extend the existing balance sheet structures to map receivables and liabilities whose

remaining time exceeds one year according to section 224 of Austrian UGB.

Create new accounts to separately disclose the receivables and liabilities whose remaining

time exceeds one year.

The following accounts have to be created:

Receivables RmTme > 1 Year Domestic Country

Transfer Posting Receivables Domestic Country (Cross Account)

Receivables RmTme > 1 Year Foreign Country

Transfer Posting Receivables Foreign Country (Cross Account)

Liabilities RmTme > 1 Year Domestic Country

Transfer Posting Liabilities Domestic Country (Cross Account)

Liabilities RmTme > 1 Year Foreign Country

Transfer Posting Liabilities Foreign Country (Cross Account)

Austria



Baumeister, Wilhelm

Page 12 (21)

3.4 Valuation Rates for Fixed Assets

RÄG entails changes to valuation rates for fixed assets and their disclosure in the fixed asset

analysis.

Up to now, the following information had to be included in the fixed asset analysis:

Acquisition or manufacturing costs at the beginning and end of the fiscal year

Acquisitions and disposals as well as transfer postings during the fiscal year

Depreciation and appreciation of the fiscal year

Status of accumulated depreciation at the end of the fiscal year

RÄG stipulates that the following information has to be added:

Accumulated depreciation at the beginning and end of the fiscal year

Changes in depreciation related to acquisitions, disposals and transfer postings during the

fiscal year

Amount capitalized during the fiscal year if interest on borrowings according to section

203, paragraph 4 of Austrian UGB was capitalized (option to capitalize so-called

"construction period interest" during construction)

3.4.1 Changes in Depreciation According to Section 226, Paragraph 1, Line 5 of UGB

According to Wirtschaftstreuhand GmbH for tax advisors and auditors, Linz (www.icon.at), changes

in depreciation related to acquisitions, disposals and transfer postings have to be disclosed

separately in exceptional cases only. Exceptional cases include reorganization and mergers.

3.4.2 Capitalized Interest on Borrowings According to Section 226, Paragraph 1, Line 6

of UGB

According to section 226, paragraph 1, line 6 of Austrian UGB, the interest amount capitalized

during the fiscal year has to be specified as defined in section 203, paragraph 4 of Austrian UGB.

Since the law does not stipulate the format that is to be used to specify this amount, it can be

specified freely in the annual report. In Austria, two ways are used in practice to specify the amount:

The interest amount capitalized during the fiscal year is shown as an acquisition in a

separate column or

It is shown as an "Of which" remark in a separate line below

The second way provides much more information because it shows how the interest amount and

corresponding depreciation developed.

http://www.icon.at/

Austria



Baumeister, Wilhelm

Page 13 (21)


If manufacturing costs include interest on borrowings, they will be mapped as a secondary asset in

fixed asset accounting. Proceed as shown in the example below:

In the fixed asset analysis, mandatory information about interest on borrowings is displayed in a

separate line:

Fixed asset master files of interest on borrowings

(Fixed asset number 4715_01 = Secondary asset)

Fixed asset master files: self-constructed building

(Fixed asset number 4715_00 = Main asset)

Switzerland



Baumeister, Wilhelm

Page 14 (21)

4. Switzerland

4.1 Payment Transactions (ISO 20022)

4.1.1 General Information

Instead of SEPA, Switzerland plans to introduce ISO 20022: the country wants to gradually

harmonize standards for electronic payment transactions by 2020 in order to establish a procedure

similar to SEPA, which is used throughout Europe and also based on ISO 20022. Bank transfers and

direct debits will be processed completely on this basis and harmonized with European standards.

The new standard will replace numerous different rules, procedures and formats for bank transfers,

direct debits and documents in Switzerland. This harmonization will be of great benefit to all Swiss

companies.

To harmonize Swiss payment transactions, the national, proprietary formats DTA/EZAG/EGA/ESR

and LSV+/BDD will replaced or extended with the ISO 20022 standard in XML format.Moreover, a

new inpayment slip will replace all former payment slips.

4.1.2 Schedule

As of 2017, the formats pain.001 and camt.054 will be converted to the new format. DTA/EZAG

transactions will be replaced with pain.001, ESR (V11 file) with camt.054. As of 2018, further formats,

pain and camt logs including inpayment slips with QR code will be implemented.

6.2

6.1

5.2

Phase 2: 2018

Further pain and

camt plus QR code

Phase 1: 2017

pain.001

camt.054

Phase 1: 2017

pain.001

camt.054

Phase 1: 2017

pain.001

camt.054

Phase 2: 2018

Further pain and

camt plus QR code

Phase 2: 2018

Further pain and

camt plus QR code

Switzerland



Baumeister, Wilhelm

Page 15 (21)

4.1.3 Further Information

Further information can be found on the following websites:

https://www.iso-20022.ch

http://www.paymentstandards.ch/de/home.html

http://www.snb.ch/de/iabout/paytrans

https://www.iso-20022.ch/

http://www.paymentstandards.ch/de/home.html

http://www.snb.ch/de/iabout/paytrans

Italy



Baumeister, Wilhelm

Page 16 (21)

5. Italy

5.1 Spesometro

The report obligation Spesometro was introduced in Italy at the beginning of 2012. It stipulates that

corporate taxpayers with an Italian sales tax ID have to report delivered and received goods and

services if these were completed in the respective calendar year.

The Budget Act (decree number 193/2016) entails changes with which quarterly report obligation is

introduced, the so-called Quarterly Spesometro and Quarterly Liquidation.

Periods in 2017 are as follows:

Report Period Spesometro +

Liquidation

January 2017-07-25

February 2017-07-25

March 2017-07-25

1st Quarter 2017-07-25

April 2017-08-31

May 2017-08-31

June 2017-08-31

2nd Quarter 2017-08-31

July 2017-11-30

August 2017-11-30

September 2017-11-30

3rd Quarter 2017-11-30

October 2018-02-28

November 2018-02-28

December 2018-02-28

4th Quarter 2018-02-28

5.2 Investment Promotion through Increased Depreciation Allowance

One of the most essential features of the Stability Law 2016 is an investment promotion for the

purchase of certain fixed assets. It allows businesses to write-off another 40% in addition to the top

limit of 100% stipulated by law for acquisition and manufacturing costs.

The so-called "Super Depreciation", or "Superammortamento", can be used under the following

conditions:

Italy



Baumeister, Wilhelm

Page 17 (21)

New assets/used assets are exempt from the promotion

Airplanes, power lines, gas pipes, and railroad cars are also exempt

Assets acquired between October 15, 2015, and December 31, 2016

Fixed assets with a depreciation rate of > 6.5% p. a.

Depreciation of another 40% that was possible in 2016 also applies to specific intangible assets in

2017.


Enable the FAA function "Depreciation Under 0"

Set up a new depreciation method "Superammortamento"

Define a factor for linear depreciation: 1.40

Set up a second level for the finalization of the depreciation

when the top limit of 140% is reached

Hungary



Baumeister, Wilhelm

Page 18 (21)

6. Hungary

6.1 Sales Tax

In summer 2016, Hungarian authorities made changes to tax regulations that will take effect in

January 2017. On accounts receivable with a sales tax of more than HUF 100,000 (approx. EUR 330),

the tax number of the invoice recipient has to be specified. For the domestic VAT information

exchange report (VIE), there will be a transitional period until June 30, 2017, in which a limit of a

sales tax of 1 million HUF will apply.

6.2 Exporting Accounts Receivable

As of 2016, all software used for the creation of accounts receivable has to feature a function for

exporting all invoices into one XML file. Upon request, the structured export has to be provided to

the National Tax and Customs Office (Nemzeti Adó- és Vámhivatal, or short "NAV") on a data

carrier. This request is usually made during an audit effected by the tax authorities. This way, the

contents of the invoices can be efficiently checked. There is no regular obligation or a fixed

deadline for an XML export to be provided to the tax authorities.

In this respect, the following modifications were made in proALPHA:

The Sales | Invoice menu was given a new menu item: "Adóhatósági ellenőrzés adatszolgáltatás"

("Data Export for Auditor"). In the corresponding option dialog, you can choose the data to be

selected.

Then you can select the directory in which the file is to be stored. The name of the file is structured

in the following way: "NAVDAT" + yy.mm.dd + ".xml".

The file contains the following pieces of information:

Information on the invoicing party and the invoice recipient

Information on the line items of the products/services

Miscellaneous (remarks, payment periods, currency, etc.)

A final list of the totals for determining the tax value, counter value and determination

base.

Hungary



Baumeister, Wilhelm

Page 19 (21)

6.3 Real-Time Invoice Data Supply

Moreover, the so-called "real-time invoice data supply" will apply as of July 2017. It stipulates that

all corporate taxpayers in Hungary have to transmit their automatically generated invoice data to

the tax authority online. The software therefore has to be able to provide all requested data of an

account receivable with a sales tax of more than HUF 100,000 (approx. EUR 330) in electronic form

and in real time. The final version of tax regulations was not yet available when this document was

created (December 2016). For example, it is not clear whether invoice data have to be transmitted

online to the tax authority before or at the time of invoicing. proALPHA will implement this

requirement and publish corresponding information in due time.

Poland



Baumeister, Wilhelm

Page 20 (21)

7. Poland

7.1 Standard Audit Files (SAF)

Changed tax regulations apply in Poland as of July 1, 2016. New regulations oblige taxpayers to

store all data required for tax returns and VAT information exchange reports in electronic form.

Taxpayers have to transmit VAT-relevant data as an SAF without a prior request by tax authorities.

Data have to be transmitted monthly by the 25th day of the next month. Depending on the size of

the company, report obligation takes effect on different dates. proALPHA supports SAF in the

Polish country version.

SAF is part of the Polish Ministry of Finance's initiative to reform electronic tax audit in Poland. The

new format is obligatory and serves as the uniform basis for all tax audits by tax authorities in

Poland. Tax authorities have announced further changes.

7.2 SAF for Large Companies

Large companies have to transmit files in the SAF-T format since July 1, 2016. The following

companies are considered large companies if the following apply to at least one of the last two

fiscal years:

More than 250 employees worked for the company on average during the year.

Net income from selling goods and services as well as financial transactions exceeds EUR

50 millions (determined based on invoices, receipts, and other accounting documents) and

the balance sheet total at the end of one of the two fiscal years exceeds EUR 43 millions.

7.3 SAF for Small Companies

If the number of employees has not exceeded 250 in one of the two fiscal years and if only one of

the threshold values mentioned above has been exceeded (annual turnover or total assets), the

company is not considered a large company. Report obligation in this case applies as of January 1,

2017.

7.4 Foreign Companies

Companies that are not based in Poland but are registered for sales tax in Poland also have to

transmit data in the SAF format.

Disclaimer



Baumeister, Wilhelm

Page 21 (21)

8. Disclaimer

This document is intellectual property of proALPHA Business Solutions GmbH. It may not be

disseminated, reproduced, published or used in any other electronic or printed publication without

the prior written consent of proALPHA Business Solutions GmbH. The contents of this document

have been created with utmost care. proALPHA cannot be held liable for the currentness,

correctness and completeness of the information provided, nor for any damage caused due to the

use of these recommendations or for any actions taken on the basis of the information provided.

The information in this document is not binding and does not represent any legal advice nor can it

replace any legal advice.

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