The meaning of annual balance sheet of the AG

The annual balance sheet documents the financial situation and success of a company and includes the closing of the accounts, the compilation of accounting documents and their audit, confirmation and publication. 

For companies that are obliged to keep accounts, the main components of the annual financial statement are the balance sheet and the profit and loss account. In addition, these are supplemented by the notes and a management report. Small traders and liberal professions submit a surplus statement of income.

The balance sheet must be in the form of an account 

Public limited companies are obliged to prepare annual accounts. The annual accounts of a public limited company consist of the balance sheet and the profit and loss account, which must be supplemented by notes. The Commercial Code stipulates that the balance sheet must be prepared in account form.  

According to this, a distinction is also made between small, medium and large corporations. The classification of a company into a certain size category is based on whether it exceeds predefined thresholds.

Equity capital of joint-stock companies important 

However, joint-stock companies, regardless of their size, must present their equity capital in detail in the balance sheet. According to the Stock Corporation Act, the share capital must be shown in the balance sheet as subscribed capital. And the subscribed capital must be broken down into the different classes of shares and the conditional capital (if any). 

If, in addition, there are multiple-voting shares, these are to be shown separately in the subscribed capital. Contributions requested but not yet paid in and not yet called in shall also be noted and designated accordingly.

Reserves shall be listed 

Capital and revenue reserves must be stated separately. According to the Companies Act, a reserve must be formed for the shares in a controlling company or a company in which a majority interest is held.  It is stipulated that revenue reserves must be listed separately either in the balance sheet or in the notes.

In this way, public limited companies publish the latest information on company data or significant business transactions. According to the assessment of market participants, this can cause the share price to climb or fall on the markets. 

The obligation to publish ad hoc announcements and the reporting obligation for so-called insider trading  in Exness deposit and withdrawal are closely related under the Securities Trading Act. Reportable insider transactions are share purchases or sales by management.

Strictly regulated procedure 

Before publication, the news must first be disclosed to the Federal Financial Supervisory Authority and the stock exchange managements. The stock exchanges reserve the right to decide whether the share price should be suspended, if necessary, if too extreme market reactions are to be expected. 

These preliminary notifications are followed by publication in national stock exchange gazettes and electronically operated, widespread information dissemination systems. 

Different deadlines for overrunning 

The Securities Trading Act sets different notification deadlines depending on the type and quality of the ad hoc announcement. A period of four trading days applies for exceeding or falling below reporting thresholds.

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