Leasing and factoring companies
Our expertise in supporting leasing and factoring companies, or contract portfolios to be transferred is based on many years of experience in auditing, consultation and valuation of these companies. In addition to traditional auditing of accounts as per HGB and IFRS, our service portfolio includes the voluntary examination of net asset value accounting for leasing businesses and, for mandates where we do not handle the annual accounting, also performing the internal audit or other outsourced tasks.
In addition, we support our clients in the implementation of the continuously changing regulatory requirements, and in due diligence and valuation orders. Further challenges for leasing companies arise indirectly from the amendment of the Audit Report Ordinance (PrüfbV) in 2015. In the form of audit reports, the regulatory body requires a previously unknown transparency for financial services institutions, which encompass compliance with the requirements of MaRisk, including risk-bearing capacity accounting, in accordance with principle of double proportionality. § 7 para. 4 and § 62, para. 7 of PrüfbV were created for leasing companies whose risk coverage capital is based on net asset value accounting in the typical manner for leasing, including an auditor's opinion on computing the net asset value and the traceability and plausibility of the underlying information and assumptions.
We expect this regulatory innovation to trigger a review of the risk strategy. The overhead associated with such a review can only be justified where net asset value accounting is essential to covering the estimate normalised risks as per § 25a, para. 1 KWG. However, if the equity capital shown in the balance sheet is sufficient to cover the risk, a change of the risk strategy is not advisable. We support affected enterprises in these considerations and indicate what structural consequences and strategy optimisation opportunities are conceivable.
Our auditing and consultancy experts for leasing and factoring companies have long-standing industry and professional experience and participate in drafting and formulating the new regulations as members of working groups in the profession, and as consultants to industry associations.