Germany
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies |
|
All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements. |
| IFRS Standards are permitted but not required for domestic public companies | ||
| IFRS Standards are required or permitted for listings by foreign companies |
|
IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards. |
| The IFRS for SMEs Standard is required or permitted | No. | |
| The IFRS for SMEs Standard is under consideration | No. |
Organisation
Role of the organisation
The objectives of the DRSC are:
- to develop recommendations for the application of principles for consolidated financial reporting;
- to provide advice on planned legislation on accounting regulations at national and EU level;
- to represent the Federal Republic of Germany in international accounting and financial reporting bodies;
- to develop Interpretations of the international accounting standards within the meaning of section 315a(1) of the Handelsgesetzbuch (HGB – German Commercial Code);
- to enhance the quality of accounting and financial reporting; and
- to promote research and education in the above-mentioned areas.
Website
Email contact
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002.
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002.
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
As a member state of the European Union, Germany is subject to the IAS Regulation adopted by the European Union in 2002.
The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) and/or in the financial statements of companies whose securities do not trade on a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation. Regulated markets in Germany are:
- Boerse Berlin
- Boerse Berlin Second Regulated Market
- Duesseldorfer Boerse
- Duesseldorfer Boerse Quotrix
- Boerse Berlin Equiduct Trading
- Boerse Berlin Equiduct Trading Second Regulated Market
- Frankfurter Wertpapierboerse
- Hanseatische Wertpapierboerse Hamburg
- Niedersaechsiche Boerse Zu Hannover
- Boerse Muenchen
- Boerse Muenchen – Market Maker Munich
- Baden-Wuerttembergische Wertpapierboerse
- European Energy Exchange
- Frankfurter Wertpapierboerse Xetra
- Eurex Deutschland
- Tradegate Exchange
Germany has opted for the use of IFRS Standards as adopted by the EU for the following:
- consolidated financial statements of companies whose debt or equity securities trade in a regulated market and companies in the process of being listed on such a market: mandatory;
- consolidated financial statements of unlisted companies and companies listed on public securities markets that are not regulated markets: optional; and
- separate financial statements of listed and unlisted companies: not permitted as an option in lieu of national GAAP.
From 1 January 1998 to 31 December 2004 listed groups in Germany were permitted to apply IFRS Standards or US GAAP. EU Regulation 1606 came into force 1 January 2005. By 1 January 2005, 28 of the DAX 30 had already adopted IFRS Standards or US GAAP.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
There are no special requirements for certain classes of companies, eg financial services. There is no requirement for companies preparing their financial statements under IFRS Standards to reconcile to local GAAP.
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in Germany (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their local accounting to be equivalent to IFRS Standards, in which case they may use their local standards. This is laid out on the ‘Financial Reporting’ page of the European Commission’s website.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Pursuant to a copyright waiver agreement with the Directorate-General for Translation of the European Commission, the Commission takes care of the translation into the official languages according to their own translation process. The translation only covers the IFRS contents as endorsed by the EC (the standard and mandatory guidance) – which is then published in the Official Journal of the European Union.
In addition, some countries (usually the standard setter or institute) have a translation contract with the IFRS Foundation to produce an ‘official translation’ for publication of a bound volume of IFRS Standards (usually the ‘Red Book’) and publication, in some cases, of individual standards and exposure drafts.
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Other comments regarding use of the IFRS for SMEs Standard?
The German Commercial Code was revised in 2009 as an alternative to the IFRS for SMEs Standard. Currently it is the policy of the German government to keep German GAAP for entities without public accountability.
The IFRS for SMEs Standard has been translated into German.
