Glossary entry (derived from question below)
German term or phrase:
Verzichtsgewinn
English translation:
gain on waiver of the shareholder loan
Added to glossary by
monbuckland
Mar 25, 2017 19:07
7 yrs ago
1 viewer *
German term
United Kingdom
Verzichtsgewinn
German to English
Bus/Financial
Accounting
… die Teilhaber hatten ein vorwiegendes Interesse an einer Qualifikation des Darlehens als Fremdkapital, um dann einige Kapitel später zu konzedieren, daß bei der Umwandlung des Darlehens ein sogenannter Verzichtsgewinn möglich erschien…
I'm sure there is an English accounting term for this...
I'm sure there is an English accounting term for this...
Proposed translations
(English)
| 4 | gain on waiver of the shareholder loan |
Ted Wozniak
|
Proposed translations
33 mins
Ted Wozniak
United States
United States
Native in English
Specializes in field
United States
Bridging the Language GAAP-
Native in: English (Variant: US) 
Works in: German to English
Related KudoZ points
:
762
Selected
gain on waiver of the shareholder loan
is almost certainly what is at the heart here. No 1:1 equivalent accounting term in English that I know of.
When a shareholder loan is effectively waived, e.g., by classifying it as a capital contribution, the tax authorities will often claim that the receiving entity has a taxable gain from what is, in essence, an interest-free loan.
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Note added at 39 mins (2017-03-25 19:46:43 GMT)
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"a" shareholder loan would probably fit better. And I probably should have chosen a slightly lower confidence level as this is an educated guess based on limited context.
When a shareholder loan is effectively waived, e.g., by classifying it as a capital contribution, the tax authorities will often claim that the receiving entity has a taxable gain from what is, in essence, an interest-free loan.
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Note added at 39 mins (2017-03-25 19:46:43 GMT)
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"a" shareholder loan would probably fit better. And I probably should have chosen a slightly lower confidence level as this is an educated guess based on limited context.
4 KudoZ points awarded for this answer.
Comment: "Thanks. I thought there must be a more snappy term, but this'll do."
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