• 1000

The revised IDW Statement on Accounting: Differentiation between maintenance expenses and production costs for buildings in the commercial balance sheet (IDW RS IFA 1 n.F.) was adopted by the Real Estate Industry Committee (IFA) on 6 November 2024 and approved by the Financial Reporting Committee (FAB) on 14 November 2024.

The statement was supplemented in particular by regulations on the treatment of the costs of energy-efficient refurbishment. Due to the legal obligation to refurbish existing buildings to be climate-neutral by 2045, the IFA believes that such investments should be given greater consideration when assessing building quality.

The changes essentially concern

  • the extension of a building through structural measures (explained using the example of the installation of a rooftop photovoltaic system),
  • the extension or specification of the central areas of the equipment, the standardisation of which can lead to a significant improvement in the quality of the building and
  • a significant improvement in the quality of the building due to a significant reduction in the final energy demand or consumption (‘energy-efficient refurbishment’).

IDW RS IFA 1 n.F. is to be applied for the first time to financial statements for financial years beginning after 31 December 2025. Earlier application is permitted.

In addition, the FAB, the IFA and the Tax Committee (StFA) have prepared a joint report on the background to the further development of IDW RS IFA 1 n.F. and its tax implications.

Both IDW RS IFA 1 n.F. and the associated report have been published in IDW Life 12/2024.

KPMG Express Accounting News

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