(1) Where the special auditors have declared in their conclusive determination that items have been understated, and where no petition for a court decision has been filed against this determination within the time limit specified in section 260 (1), the items are to be stated in the first annual financial statements drawn up following expiry of said time limit at the values or amounts established by the special auditors. This does not apply insofar as, due to changed circumstances, and namely in the case of objects that are subject to wear and tear, a lower value is to be stated for assets items or a higher amount for liabilities items as a result of such wear and tear pursuant to sections 253 to 256a of the Commercial Code or in accordance with generally accepted accounting principles. In such event, the reasons are to be stated in the notes, and the manner in which the special auditors have developed the values or amounts established to become the value or amount stated pursuant to sentence 2 is to be presented in a separate statement. Where the objects no longer exist, this fact is to be reported in the notes, as well as the appropriation of the revenue from the disposal of such objects. For the individual items of the annual balance sheet, the differences in amount are to be noted by which the assets items were stated at a higher value or the liabilities items were stated at a lower value due to sentences 1 and 2. The sum total of the differences in amount is to be recognised separately on the “Liabilities” side of the balance sheet, and in the profit and loss account as “revenue from a higher valuation pursuant to the result of the special audit.” Where the company is a small share capital company (section 267 (1) of the Commercial Code), it is to apply sentences 3 and 4 only if the pre-requisites of section 264 (2) sentence 2 of the Commercial Code are met, taking account of the special audit performed pursuant to this division.
(2) Where the court seised with the matter pursuant to section 260 has established that items have been understated, subsection (1) applies accordingly to the statement of the items in the first annual financial statements drawn up after the decision by the court has become final and binding. The differences in amount are to be recognised on the balance sheet as “revenue from a higher valuation pursuant to the decision by the court.”
(3) The revenue resulting from a higher valuation pursuant to subsections (1) and (2) will not be counted, in applying section 58, as part of the surplus for the year. The general meeting decides on the appropriation of the revenue reduced by the taxes to be remitted therefor, unless a net loss is recognised in the annual financial statements that is not covered by capital reserve or retained earnings.