Bilanzrechtsreformgesetz – BilReG
the Accounting Law Reform Act
(Bilanzrechtsreformgesetz – BilReG) governs the transition to
IFRS accounting. It mainly addresses publicly traded parent com-
panies (kapitalmarktorientierte Unternehmen) – i.e. Companies
whose securities are traded on a regulated market in any Mem-
ber State of the EU.
The obligation of publicly traded companies
to prepare their consolidated financial statements in accordance
with IFRS starting in 2005 is not, however, explicit under the
German Commercial Code (Handelsgesetzbuch – HGB). It is
instead based on the IAS Regulation. Section 315a (2) HGB goes
beyond the obligatory requirements of the IAS Regulation in
that it requires parent companies to prepare their consolidated
financial statements in accordance with IFRS if they have fled
an application for admission of their securities to trading on a
regulated market.
Non-publicly traded parent companies may
now meet their legal requirements by preparing their consolidat-
ed financial statements in accordance with IFRS. Since 2007,
the application of IFRS has been obligatory for all EU/EEA parent
companies publicly traded on a regulated market in the EU/EEA.
EU Forecast
euf:ba18f:120/nws-01