In October 2015, the Voranschlags- und Rechnungsabschlussverordnung 2015 (VRV) entered into force. This will lead to the introduction of a new budgetary law and will also require an account for all Austrian municipalities from 2019-2020.
The calculation of the value is aimed at both the collection of assets and the collection of the debts of a municipality. The following is an overview of the most important items in the financial statements, which must also be assessed.
Municipalities are obliged to record assets. The rules and models for this are currently not yet final. For this reason, we will be very close to tried and tested procedures in the area of private companies and industries. As a rule, the principle of the individual valuation of all assets exists, whereby, in exceptional cases, fixed value procedures can also be used.
The following terms play a role in determining the value propositions:
About the author, Heinz Hofstaetter – Over 20 years of international experience in senior management positions in the areas of consulting, banking, finance, asset management, valuation and Real Assets.