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In the second series of balance sheets, Prof. Dr. Littkemann explains the relevant legal principles of the annual financial statements: Structure of a balance sheet Balance sheet structure and breakdown Structure of the profit and loss account (P&L) P&L according to the cost of sales method (UKV) P&L according to the total cost method (GKV) Appendix Management report Size-dependent relief for very small, small, medium and large capital companies Preparation deadlines and audit obligations Principles of proper accounting Prohibitions and options for capitalization Prohibition of offsetting and exceptions