Are there Dutch users of Manager, who also want to change the translation of Liabilities into “Vreemd Vermogen” into “Passiva”. In the Dutch system this is the only right way to categorize the debit and credit side of the balance sheet. Or am I the only user who is aware of this incorrect way of presenting the balance sheet???
The Summary is structured according to the Anglo-Saxon model.
Assets = Liabilities + Equity
If you want to include the continental basis in your Summary, it will need to be updated to:
Activa = Passiva
Passiva bestaat uit Vreemd Vermogen en Eigen Vermogen.
> I agree with the point raised by ries.
From an accounting perspective, Manager is correct in using the fundamental equation:
Assets = Liabilities + Equity
However, this is not how a balance sheet is traditionally presented in the Netherlands.
Under Dutch accounting practice, the balance sheet is presented as:
Assets = Liabilities (Passiva)
where Passiva consists of:
Equity (Eigen Vermogen)
Liabilities (Vreemd Vermogen)
In other words:
Passiva = Equity + Liabilities
The issue is therefore not the accounting logic, but the Dutch translation and presentation. Translating Liabilities as Vreemd Vermogen is technically correct, but using it as the heading opposite Activa is confusing for Dutch users, because it suggests that Equity is not part of the right-hand side of the balance sheet.
For the Dutch language version, I believe the Summary would better reflect Dutch accounting practice if it were presented as:
Assets (Activa)
Liabilities (Passiva)
Equity (Eigen Vermogen)
Liabilities (Vreemd Vermogen
This would align with Dutch statutory financial statements, the Dutch Accounting Standards (RJ), and common accounting practice, while leaving the underlying accounting model of Manager completely unchanged.