Lageberichte

Lageberichte are management reports that accompany the annual financial statements of many German companies. They provide a qualitative complement to the financial data, describing the company’s business development, financial position, and results, as well as the key risks and opportunities facing the enterprise. The report also often includes a forecast of expected development and information on important events after the reporting date. In addition, it may cover non-financial topics such as research and development, environmental and social matters, and the company’s internal control and risk management systems.

Legal basis and scope: In Germany, the Lagebericht is governed by the Handelsgesetzbuch (HGB), particularly sections 289 to 315a. It is required for companies that meet certain size criteria or operate within a group context, such as large corporations and group entities. The Lagebericht is typically prepared by management and is subject to audit by the statutory auditor as part of the annual report.

Content and structure: Typical components include the economic and financial Lage (business position and development), a prognosis section outlining opportunities and risks, and a forward-looking assessment of expected performance. For larger entities, the report may include non-financial information mandated by national or EU guidelines, such as environmental, social, and governance topics.

Purpose and audience: The Lagebericht aims to provide investors, lenders, employees, regulators, and other stakeholders with a comprehensive, forward-looking understanding of the company beyond the financial statements, facilitating assessment of future prospects and risk exposure.

Note: The term Lageberichte is used to refer to multiple such reports across entities, and smaller firms may be exempt or subject to simplified requirements.