fb

ACCA SPRING SALE 25% OFF

We’ve got some good news for you. We’ve just found 55 billion euros…

We’ve got some good news for you. We’ve just found 55 billion euros…

Sometimes things go missing. You search high and low and if you are lucky enough to find them again then you can be pretty happy.

Germany though has just found something that it didn’t even know was missing.

It’s not as though it’s simply some keys that have dropped down the back of the sofa. No, Germany has just found €55 billion.

This is a pretty significant amount and the “find” came about due to spotting an accounting error.

In October last year, FMS Wertmanagement was created when toxic loans and securities with a face value of nearly €175 billion were transferred to it from HRE bank which was nationalised in 2009.

In other words, a so called “bad bank” was created out of the insolvent parts of HRE bank whereby the bad parts (the toxic debts) of the HRE bank were moved to a separate bank (FMS Wertmanagement).

Moving the toxic debt to the “bad bank” meant that what stayed in the nationalised HRE bank was non toxic and the nationalised HRE bank became solvent. This would in thoery help ensure that HRE bank would make a full recovery.

The German Finance Ministry today announced that there had been a double booking of debt and that staff had inadvertently subtracted funds when they should have added them.

The end result is that the reversal of this accounting error means that German debt, as a percentage of GDP reduces from 83.7% to 81.1% – i.e. debt has fallen by 2.6 percentage points.

So, in summary some good news for the German economy.

I should also mention that if the person that made the initial accounting error is by any chance reading this then we do run a wide variety of training programmes including our introduction to finance range of courses…

Share this entry

Recent articles

View All Articles
Nothing to whine about…
Apr 22, 2025
Title
Nothing to whine about…
Excerpt

The wine industry, steeped in centuries of tradition, is experiencing a shake-up that’s sparking debate among enthusiasts and […]

PwC exits 9 African countries
Apr 18, 2025
Title
PwC exits 9 African countries
Excerpt

PwC, one of the Big Four accounting firms, recently announced the closure of its operations in nine Sub-Saharan […]

Using AI to reward staff
Apr 12, 2025
Title
Using AI to reward staff
Excerpt

In a bold move that combines innovation with employee incentives, UK-based law firm Shoosmiths has become the first […]

Barking up the right tree?
Apr 07, 2025
Title
Barking up the right tree?
Excerpt

In a world where businesses are constantly seeking that elusive “wow” factor to stand out, a historic Parisian […]

10 reasons CFOs are leaving…
Apr 02, 2025
Title
10 reasons CFOs are leaving…
Excerpt

Last year, chief financial officers (CFOs) left their roles at the fastest rate in six years, according to […]

Women at the top: EY becomes first Big 4 firm with dual female leaders
Apr 01, 2025
Title
Women at the top: EY becomes first Big 4 firm with dual female leaders
Excerpt

EY has just made history – Alison Duncan will take over as UK Chair of EY, joining forces […]

When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Mar 26, 2025
Title
When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Excerpt

What happens when auditors fail to properly understand the business they’re auditing? That’s the question at the heart […]

Volkswagen sells more sausages than cars
Mar 18, 2025
Title
Volkswagen sells more sausages than cars
Excerpt

No, we’ve not made an early April Fools Joke. It’s true. Volkswagen do sell more sausages than cars. […]