• Pitfalls of accounting

Circumnavigating accounting pitfalls

Accounting for foundations and non-profit organisations has some special features. In particular, auditors of tax-privileged institutions must always be aware of the close ties with non-profit law. Without the appropriate expert knowledge, errors are easily overlooked and can lead to significant problems. We are aware of this and support you with our extensive experience in the context of auditing and consultancy of and for foundations and non-profit organisations. This applies to both the annual financial statements and to the revenue/expenditure statement with the annual financial statement.

Due to our industry sector work at the IDW and holding regular seminars in the accounting field, we are constantly up to date. For example, we are happy to offer you auditing in line with the new auditing standards IDW PS 480 and IDW PS 490 of the Institute of Public Auditors in Germany (IDW).

We are pleased to offer the following auditing services and accounting-related services:

  • Conducting annual audits in compliance with special aspects of foundation law and non-profit law
  • Auditing of financial statements of all kinds in line with IDW PS 480, and individual financial statements or their components in line with IDW PS 490 (e.g. appropriation of funds statements) as well as issuing audit opinions
  • Preparation of annual accounts and annual financial statements, and implementing the current financial accounting
  • Accounting consultancy and preparation of expert opinions on specific accounting issues. If so desired, we are also happy to handle communications with the foundation supervisory authority
  • Support in disclosures and questions of modelling while taking the provisions of foundation non-profit law into account (e.g. conversion of the income statement from the total cost method to the cost of sales method)
  • Consultancy on the accruals/deferrals in individual spheres of accounting (e.g. as a taxable economic business operation) and support in adapting account structures
    • Conducting valuations – for example, in the context of donations
    • Creating capital maintenance concepts
    • Performing internal audits