Accounting

© BDI / J.Nikolay

The German Act on Modernisation of Accounting Regulation (BilMoG) adopted by German Parlament in March 2009 has two purposes.

Accounting Legislation

Within the scope of a deregulation, exemptions and reduced requirements with respect to bookkeeping or accounting duties are provided especially for small and medium-sized sole trades carrying on small business. In addition, the accounting regulation under German Commercial Code (HGB) has been modernized into an equivalent, though simpler and more cost-efficient answer to the IFRS.

The information function related to accounts under German commercial law is improved for non-capital-market-oriented companies. With respect to the financial statements, the function of the balance sheet under the German Commercial Code (HGB) as a means of measuring distributions and maintaining capital is retained as a general rule. By abandoning reverse authoritative priciples, the exercise of options under German tax law is, however, no longer to impact the annual financial statements under German commercial law. BDI supported actively the modernisation of the German Commercial Law (HGB) and supports the new law.

International Accounting Standards

BDI supports IASB in its commitment to improve International Financial Reporting Standards (IFRS) and the convergence of IFRS and US-GAAP to achieve a single set of high quality global standards. BDI supports IASB to provide a high degree of accountability through appropriate due process including wide engagement of stakeholders, and oversight conducted in the public interest.

As a member of BusinessEurope BDI participate in the process of standard setting and provides input to the comment letters written to the IASB by BusinessEurope. German industry must be committed to the due process to ensure high quality and widely accepted standards.