Rechnungslegungsvorschriften

Rechnungslegung refers to the systematic recording, classification, and reporting of financial information by an entity, as required by statutory and regulatory frameworks. In Germany, the primary legal basis is the Handelsgesetzbuch (HGB), the German Commercial Code, which prescribes principles for balance sheet, profit and loss statement, and notes. The HGB emphasizes realism, prudence, and continuity, requiring that assets be shown at their acquisition cost and liabilities at their settlement value. Companies also must prepare an annual financial statement summarizing financial position and performance, either as a simplified version for small entities or a full statement for larger corporations.

For publicly traded firms and other larger entities, the European Union’s Accounting Directive and the related International Financial Reporting Standards (IFRS) provide an alternative framework. IFRS encourages fair value measurement and extended disclosure, aiming for greater comparability across borders. German financial law requires German companies to adopt IFRS for consolidated financial statements once they are listed, while their individual statements may still follow HGB.

Rechnungslegung serves several purposes: it ensures transparency for investors, creditors, and regulators; it facilitates the assessment of an entity’s financial health; and it supports tax and legal obligations. In practice, the process involves internal controls, audit requirements, and compliance with both domestic and international guidance. The evolution of German accounting standards reflects a balance between national traditions and harmonisation within the European Union, ensuring that financial reporting remains robust, reliable, and relevant for stakeholders worldwide.