financial reporting
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financial reporting
The process of systematically recording, documenting, and presenting all business transactions of a company. It serves to inform external parties such as investors, creditors, and the tax office.
Große Kapitalgesellschaften unterliegen strengen Vorschriften zur Rechnungslegung.
Large corporations are subject to strict financial reporting regulations.
The word is made up of 'Rechnung' (account/invoice) and 'Legung' (laying). 'Legung' comes from the verb 'legen' (to lay). Literally, it means that one 'gives an account' of business transactions, that is, presents them systematically.
Die externe Rechnungslegung ist für viele Unternehmen gesetzlich vorgeschrieben.
External financial reporting is required by law for many companies.
This noun is often connected with certain standards or laws. Typical formulations are 'Rechnungslegung nach HGB' (financial reporting according to the German Commercial Code) or 'Rechnungslegung nach IFRS' (financial reporting according to International Financial Reporting Standards).
Unser Unternehmen stellt die Rechnungslegung auf internationale Standards um.
Our company is switching its financial reporting to international standards.
'Rechnungslegung' (financial reporting) is a technical term from business administration and tax law. In normal everyday life, this word is hardly used.
Für die Prüfung musste sie die Grundsätze der ordnungsgemäßen Rechnungslegung lernen.
For the exam, she had to learn the principles of proper financial reporting.
bill / reckoning
'die Abrechnung' and 'die Rechnungslegung' both have to do with numbers and financial information, but they are used in different situations. An Abrechnung is usually a concrete statement that shows at the end what has to be paid or what the result is. 'Rechnungslegung' means the entire organized process in which a company records and presents its business transactions. The word sounds more technical and belongs more to accounting, companies, and reports for the tax office or investors. They can be confused because both have to do with bills, accounts, and numbers. For a single document or cost statement, 'Abrechnung' fits; for the system of company reports, 'Rechnungslegung' fits.
In großen Firmen muss die Rechnungslegung besonders genau sein.
In large companies, financial reporting has to be especially accurate.
Mein Nachbar zeigt mir die Abrechnung für die Reparatur am Dach.
My neighbor shows me the bill for the roof repair.