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Supplementary balance sheet

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Supplementary balance sheets contain shareholder-specific adjustment items for the assets held jointly and thereby ensure that the respective shareholding of the individual co-entrepreneurs is correctly recorded for tax purposes.

The greatest economic and practical importance is attached to the preparation of supplementary balance sheets in the event of a change of partners. This process only has tax consequences for the acquiring and the selling shareholder, not for the partnership itself. In the company balance sheet, the assets are regularly continued at the previous book values; in this case, the acquirer takes over the (nominal) capital account of the seller. Only if, in exceptional cases, the book value of the acquired partnership interest corresponds to the purchase price, is the participation of the newly acquired partner in the total assets of the partnership reflected accordingly.

Typically, however, the purchase price exceeds the book value (goodwill). Consequently, the individual items of the company’s assets are to be attributed to the new shareholder at values other than the book values. Accordingly, the additional price paid is shown on the liabilities side of the supplementary balance sheet as additional capital. On the assets side, this amount must be allocated to the individual assets containing hidden reserves. Supplementary balance sheets themselves therefore do not contain any assets; only value adjustments to the assets tied up in the overall balance sheet

Supplementary balance sheets are to be continued in subsequent years. The resulting results are recognized in supplementary income statements. This corrects the share of the total net income attributable to the individual shareholder.

For each shareholder, the result of the supplementary balance sheet is combined with the share in the overall result for tax purposes to form the result from the overall balance sheet.