Glossary entry (derived from question below)
German term or phrase:
Sachverhaltsgestaltende Maßnahmen
English translation:
grooming transactions
Added to glossary by
Andrea Nemeth-Newhauser
Jun 24, 2005 19:14
18 yrs ago
42 viewers *
German term
Sachverhaltsgestaltende Maßnahmen
German to English
Bus/Financial
Finance (general)
IAS
The term came up in the audit of an annual report in Germany: Wesentliche Bewertungsgrundlagen und sachverhaltsgestaltende Maßnahmen. Wesentliche sachverhaltsgestaltende Maßnahmen wurden im Berichtsjahr nicht vorgenommen.
Proposed translations
(English)
Proposed translations
1 hr
German term (edited):
Sachverhaltsgestaltende Ma�nahmen
Selected
grooming transactions
In addition to HGB s. 321(2) correctly identified by Ted, the term also appears in IDW Prüfungsstandard/Auditing Standard 450 (Long-Form Audit Reports), section 3.4.2.4 Sachverhaltsgestaltende Maßnahmen/Grooming Transactions.
Here's the English for the HGB subsection cited by Ted (taken from the forthcoming 4th edition of Brooks/Mertin:
"(2) The main part of the audit report shall determine whether the accounting records and other audited documents, the single-entity annual financial statements, the management report, the consolidated financial statements and the group management report comply with the legal requirements and the supplementary provisions of the shareholder agreement or articles of association. The auditors shall also report on any reservations that have not led to a qualified or non-affirmative auditors' report, but are important for the supervision of management and of the audited company. In addition, the auditors shall comment on whether the financial statements on the whole present a true and fair view of the net assets, financial position and results of operations of the corporation or the group in accordance with German accepted accounting principles or other applicable accounting standards. This shall also include a description of material measurement bases and address the question of the overall effects of changes in the measurement bases, including the exercise of accounting and measurement options and the application of scopes of discretion and grooming transactions, on the presentation of the net assets, financial position and results of operations. For this purpose, the items included in the single-entity annual financial statements and consolidated financial statements shall be analysed and adequately discussed, if these disclosures are not contained in the notes. A statement shall be made as to whether the legal representatives have provided the representations and evidence required by the auditors."
Here's the English for the HGB subsection cited by Ted (taken from the forthcoming 4th edition of Brooks/Mertin:
"(2) The main part of the audit report shall determine whether the accounting records and other audited documents, the single-entity annual financial statements, the management report, the consolidated financial statements and the group management report comply with the legal requirements and the supplementary provisions of the shareholder agreement or articles of association. The auditors shall also report on any reservations that have not led to a qualified or non-affirmative auditors' report, but are important for the supervision of management and of the audited company. In addition, the auditors shall comment on whether the financial statements on the whole present a true and fair view of the net assets, financial position and results of operations of the corporation or the group in accordance with German accepted accounting principles or other applicable accounting standards. This shall also include a description of material measurement bases and address the question of the overall effects of changes in the measurement bases, including the exercise of accounting and measurement options and the application of scopes of discretion and grooming transactions, on the presentation of the net assets, financial position and results of operations. For this purpose, the items included in the single-entity annual financial statements and consolidated financial statements shall be analysed and adequately discussed, if these disclosures are not contained in the notes. A statement shall be made as to whether the legal representatives have provided the representations and evidence required by the auditors."
4 KudoZ points awarded for this answer.
Comment: "That's just what I was looking for. Thanks for finding the translation of the subsection. I knew there was a good English translation of the HGB, but I couldn't get a copy in time. "
4 mins
German term (edited):
Sachverhaltsgestaltende Ma�nahmen
measures influencing the issues / issue-influencing measures
significant issue-influencing measures were not taken/forthcoming in the course of the year under review.
9 mins
andrealondon
Native in English
Specializes in field
Fast and accurate
Native in: English 
, Italian
Works in: German to Italian, English to Italian, Italian to English, and 2 more.
German term (edited):
Sachverhaltsgestaltende Ma�nahmen
no significant changes have been made in the way the audit was conducted
I need to know if it is in the audit report and the all context to help you better
Peer comment(s):
| neutral |
Ted Wozniak
: the remark in the audit report is to the company's accounting methods and procedures, not the conduct of the audit
16 mins
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+2
22 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
:
511
German term (edited):
Sachverhaltsgestaltende Ma�nahmen
no significant measures effecting
Section 321 (2) HGB states "Im Hauptteil des Prüfungsberichts ist festzustellen, ob die Buchführung und die weiteren geprüften Unterlagen, der Jahresabschluss, der Lagebericht, der Konzernabschluss und der Konzernlagebericht den gesetzlichen Vorschriften und den ergänzenden Bestimmungen des Gesellschaftsvertrags oder der Satzung entsprechen. In diesem Rahmen ist auch über Beanstandungen zu berichten, die nicht zur Einschränkung oder Versagung des Bestätigungsvermerks geführt haben, soweit dies für die Überwachung der Geschäftsführung und des geprüften Unternehmens von Bedeutung ist. Es ist auch darauf einzugehen, ob der Abschluss insgesamt unter Beachtung der Grundsätze ordnungsmäßiger Buchführung oder sonstiger maßgeblicher Rechnungslegungsgrundsätze ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Kapitalgesellschaft oder des Konzerns vermittelt. Dazu ist auch auf wesentliche Bewertungsgrundlagen sowie darauf einzugehen, welchen Einfluss Änderungen in den Bewertungsgrundlagen einschließlich der Ausübung von Bilanzierungs- und Bewertungswahlrechten und der Ausnutzung von Ermessensspielräumen sowie ***sachverhaltsgestaltende Maßnahmen*** insgesamt auf die Darstellung der Vermögens-, Finanz- und Ertragslage haben. Hierzu sind die Posten des Jahres- und des Konzernabschlusses aufzugliedern und ausreichend zu erläutern, soweit diese Angaben nicht im Anhang enthalten sind. Es ist darzustellen, ob die gesetzlichen Vertreter die verlangten Aufklärungen und Nachweise erbracht haben."
...signficant measures the overall presentation of the company's financial postion and performance ...
...signficant measures the overall presentation of the company's financial postion and performance ...
Peer comment(s):
| agree |
Kim Metzger
0 min
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| neutral |
Lancashireman
: effect/affect?
6 mins
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oops! Affecting is correct. Thank you.
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| agree |
Raghunathan Rajagopalan
12 hrs
|
5121 days
Leighton Jacobs
United Kingdom
United Kingdom
Native in English
Specializes in field
United Kingdom
Your Marketing & Sustainability Expert
Native in: English (Variant: UK)
Works in: German to English, French to English
Massaging the numbers/figures
I would avoid 'grooming transactions' for the simple reason it is not used in English at all. If you search for the term in google for example, all you'll find is translation related sites and pages...
'[...] die Sachverhaltsgestaltung bereits vor dem Bilanzstichtag an; es kommt also zur aktiven Einwirkung auf den Jahresabschluss durch die Vornahme bestimmter Geschäfte. Auf diese Weise kann die Vermögens, Finanz und Ertragslage des Abschlusses in eine gewünschte Richtung beeinflusst werden. Ein gängiges Beispiel für eine Sachverhaltsgestaltung ist die Aufnahme eines Kredites vor und die unmittelbare Tilgung nach Bilanzstichtag. Hierdurch wird die Bilanzsumme erhöht und es kommt zum Ausweis höherer liquider Mittel.'
(source: https://www.psp.eu/artikel/231/was-bedeutet-eigentlich-sachv...
From this it's clear that the term relates to management taking decisions to move forward or delay certain payments or take other related actions, e.g. credit as mentioned above, to "smooth out" company performance.
In the book 'how to read a financial report - for managers, entrepreneurs, lenders, lawyers and investors' by John A. Tracy and Tage C. Tracy, there is a sub-section entitled "Massaging the numbers" (pg. 175) which reads: '[...] In short, managers can do certain things for the main purpose of reducing or increasing expenses for the year [...] which has the effect of boosting or dampening the recorded profit for the year.'
The only problem is that 'massaging the numbers' is not exactly appropriate for official texts, e.g. an auditors' report.
The German 'Sachverhaltsgestaltende Maßnahmen' and 'Sachverhaltsgestaltungen' fall under the heading of 'Bilanzpolitik' which roughly equates to 'Critical accounting policies' in English. You could perhaps consider something along the lines of 'Critical accounting transactions' or 'Critical accounting policy disclosure'.
Just finally, the term 'Window dressing' could also be useful, though this is more specific to actions taken when drawing up the balance sheet rather than before the end of the financial year as with Sachverhaltsgestaltende Maßnahmen.
'[...] die Sachverhaltsgestaltung bereits vor dem Bilanzstichtag an; es kommt also zur aktiven Einwirkung auf den Jahresabschluss durch die Vornahme bestimmter Geschäfte. Auf diese Weise kann die Vermögens, Finanz und Ertragslage des Abschlusses in eine gewünschte Richtung beeinflusst werden. Ein gängiges Beispiel für eine Sachverhaltsgestaltung ist die Aufnahme eines Kredites vor und die unmittelbare Tilgung nach Bilanzstichtag. Hierdurch wird die Bilanzsumme erhöht und es kommt zum Ausweis höherer liquider Mittel.'
(source: https://www.psp.eu/artikel/231/was-bedeutet-eigentlich-sachv...
From this it's clear that the term relates to management taking decisions to move forward or delay certain payments or take other related actions, e.g. credit as mentioned above, to "smooth out" company performance.
In the book 'how to read a financial report - for managers, entrepreneurs, lenders, lawyers and investors' by John A. Tracy and Tage C. Tracy, there is a sub-section entitled "Massaging the numbers" (pg. 175) which reads: '[...] In short, managers can do certain things for the main purpose of reducing or increasing expenses for the year [...] which has the effect of boosting or dampening the recorded profit for the year.'
The only problem is that 'massaging the numbers' is not exactly appropriate for official texts, e.g. an auditors' report.
The German 'Sachverhaltsgestaltende Maßnahmen' and 'Sachverhaltsgestaltungen' fall under the heading of 'Bilanzpolitik' which roughly equates to 'Critical accounting policies' in English. You could perhaps consider something along the lines of 'Critical accounting transactions' or 'Critical accounting policy disclosure'.
Just finally, the term 'Window dressing' could also be useful, though this is more specific to actions taken when drawing up the balance sheet rather than before the end of the financial year as with Sachverhaltsgestaltende Maßnahmen.
Discussion