Gegenwert

Gegenwert is a German term meaning countervalue or equivalent value. It refers to the value that is given in return for something in a transaction, or the value that a non-cash asset, service, or currency represents in another currency or form. The word combines Gegen- (against, opposite) and Wert (value).

In economics and accounting, Gegenwert is used to describe the value balance in an exchange. If a seller provides goods worth 1,000 euros and receives 1,000 euros in return, each side’s Gegenwert is the monetary amount exchanged or the equivalent consideration in kind. The concept is also used when measuring the value of assets or liabilities in a common unit, such as converting foreign currency amounts into the functional currency of a business.

In legal and contractual contexts, Gegenwert relates to the consideration or counter-performance that accompanies a obligation. It underpins the idea that a contract is formed with mutual exchange of value. The term is closely related to, but not always identical with, Gegenleistung (counter-performance) or Entgelt (remuneration). In practice, the stated Gegenwert may differ from market price due to negotiations, valuation methods, discounts, or barter arrangements.

Applications of the term appear in finance, accounting, and contract law, where clear articulation of Gegenwert helps determine fairness, taxation, and settlement in both monetary and non-monetary exchanges. The concept is widely used in German-language documents, though the precise usage can vary by context and discipline.