Newsletter about proposed German 'accounting reform' legislation
04 Aug 2008
In May, the German Government approved a draft 'accounting reform' bill – known as the Act to Modernise the Accounting Law – that is expected to bring about significant changes in how entities report under German GAAP in their individual accounts.
Goals of the reform are:
- deregulation and cost reduction, particularly for small and medium-sized entities,
- improving the annual financial statements drawn up under commercial law by removing some of the options that were added on the transformation of the EU's Accounting Directives into German law in the mid-1980s, and
- bringing German GAAP closer to IFRSs.