Dhe rate hike recently announced by the European Central Bank for July and subsequent further increases will of course also have consequences for the corporate world. With a view to the balance sheets, this primarily affects goodwill, real estate portfolios, pension provisions – and debt. Because they all depend on interest. However, whether the consequences are positive or negative differs from case to case, because the interactions are complex and it is not just the interest rate that plays a role. High inflation is also making itself felt. Ultimately, it depends on whether balance sheets are prepared according to German commercial law or according to international IFRS rules. What can be expected for individual items?
A study published in May by Christof Schürmann, an analyst at the Flossbach von Storch Research Institute, shows that company values on the balance sheets of DAX companies are far higher than the international average. “Rising interest rates increase the likelihood that Dax companies will have to correct their high company values downwards,” says Schürmann. These balance sheet items, known as goodwill, arise when more money is paid for acquisitions than there are tangible assets. “Goodwill is a shaky item anyway, so rising capital costs due to higher interest rates and crises are likely to put it under pressure,” expects the accounting expert, who has been dealing with the subject of goodwill for years.
