Liabilities of a company arising from the contractual promise of future pension payments (company pension, employee pension) to employees. – According to International Accounting Standards, such liabilities must be disclosed precisely. However, as this standard was not mandatory for banks in the EU before 2005, a corresponding item was often missing from the balance sheet, which made it difficult to assess the shares of the banks concerned. Regulators in Europe could recommend, but not enforce, balance sheet recognition. – If pension provisions are to be valued as debt, then companies with high provision amounts – such as: Deutsche Post AG)-are downgraded in their rating. However, a downrating means that borrowing money on the capital market becomes more expensive. – See pension, authority management, banking, contractual trust arrangement, presentation, credible, nothing, balance sheet, pension fund, rating, trust models, materiality. – Cf. BaFin Annual Report 2004, pp. 70 f. (regulatory requirements for accounting for the actual amount of obligations), BaFin Annual Report 2005 (risk-based supervision).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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