All German statutory financial statements must agree with the underlying
accounting records and must follow the historical cost convention.
They must be complete and accurate and be drawn up within three months of the
company’s year-end. This period is extended to six months for small companies,
but only on the condition that the delay can still be seen as being within the
confines of an “orderly manner of doing business”. The financial statements
must follow the accruals accounting principle. Consistency and prudence are
emphasised as principles.
Financial statements must be drawn up under the
assumption of going-concern, that is, that the company will continue its
business operations into the foreseeable future, unless there are specific
circumstances (legal or otherwise) to the contrary.
Appropriate depreciation of fixed assets must be recorded, liabilities must be taken up at their anticipated
repayment amounts and provision must be made prudently for foreseeable