Proof of Existence of Reasons for Opening Insolvency Proceedings in Accordance with IDW S11

What is an IDW S11 report?

With an expert opinion according to IDW S11, you can have the crisis stage of your company proven. In particular, you receive a statement on the existence of reasons for opening insolvency proceedings, i.e. insolvency, imminent insolvency and calculated over-indebtedness.

The basis for an expert opinion according to IDW S11 is a financial plan that is based on the current financial status of the company and covers a planning period of 13 weeks.

The statement of an IDW S11 expert opinion

The IDW S11 expert opinion indicates whether a company is in insolvency or threatened insolvency because of insolvency or threatened insolvency or because of recherché over-indebtedness.

Insolvency exists if at least 90% of all due liabilities cannot be settled as agreed. If this demand is not met but can be proven to be met again within a maximum of three weeks, it is a case of payment stagnation, not insolvency. In this case, the temporary lack of payment is not a reason for insolvency.

Arithmetical over-indebtedness exists if the company’s assets do not cover the liabilities due.

Difference between an IDW S6 expert opinion and an IDW S11 expert opinion

An IDW S6 expert opinion clearly goes beyond the scope of an IDW S11 expert opinion. An IDW S11 expert opinion only shows whether a company mathematically fulfils insolvency criteria, but does not show any measures that can lead the company out of this state.

An IDW S11 expert opinion that shows that a company is not insolvent and that there is no threat of insolvency gives the management the certainty that no application for creditor protection needs to be filed. If the IDW S11 report indicates insolvency, it serves as an argument for the management to the shareholders that it must file for creditor protection.


What are your challenges?

Restart Dialogue