Accordance with German accounting regulations
The obligation to prepare consolidated financial statements in
accordance with German accounting regulations exists even if
the German parent company is itself the subsidiary of a foreign
group of companies (sub-group financial statement).
However, there are signifcant exceptions to this rule. The German parent
company is exempt from the requirement to prepare German
(sub-group) consolidated financial statements if the foreign
parent company prepares consolidated financial statements
(exempting consolidated financial statements) which include
the German sub-group, provided these exempting consolidated
financial statements comply with EU-Directive 83/349/EEC of
June 13 1983, and fulfll a number of other requirements (e. G.
Examination of the exempting consolidated financial statements
by qualifed auditors).
In such cases it is irrelevant whether the
parent company is established in the EU, in the European Eco-
nomic Area (EEA), or in a non-member country. This exemption
does not, however, apply if the German parent company is a
stock corporation (Aktiengesellschaft – AG) whose shares are
listed and traded on a recognized stock exchange.
Any share- holders other than the foreign parent company that hold at least
10% of the shares (in the case of an AG, KGaA, or SE) or at least
20% of the shares (in the case of a GmbH) in the German parent
company may block the exemption as well.
EU Forecast
euf:ba18f:116/nws-01