International Accounting

Name : Dimas Aditya Riyadi
Class : 4EB17
NPM : 22212113

IFRS In Germany

 

After the end of world war 2, accounting in germany always changed. Before the world war, bussines accounting used national and sectional account, they are looked from France which already used that system. The system changed again in 1965, which used english-american ide for the bussines financial report. In 1969 the bussines organization need the management’s report and audit regulation to be some juristical requirement in Corporate Publicity Law. In the beginning of 1970’s, europa union has been make some instruction to coordination all the countries in europa. In december 1985 from the Comprehensive Accounting Act, the command number four, seven and eight are becoming the rules in Germany. In 1998 there are two new regulation. The first one was talk about the possibility for the bussines organization which make equity or liabilities in the stock market to used international accounting principle, and the second is talk about the possibility for the bussines organization to make some standart in the financial’s consolidation report. Tax regulation also determine the commercial’s accounting. Like there is some regulation which talk about depreciation. It must be reported in finacial’s report. There is no differences betwen the taxation’s financial report or commercial’s financial report.

The Regulation

Before 1998, germany don’t have any standart for organizing financial’s accounting. The german institute gave some consultation for the various process to make regulation in accounting and financial’s report. After that the germany accounting standarts comminte has established by the judiciary ministry. The making of the financial’s report in germany was same as in the england or USA. In 2003, the germany accounting standart board used some new strategy which make some globaly accounting standart. This standart recognized about requirements from europa union for the registered companies. And the financial accounting control act was established in 2004 to increased the obidience of the rwquirements financial’s report in germany and IFRS for the registered companies.

The Financial’s Report

The regulations has confirmed some requirement in accounting, audit and financial’s report which depend on the characteristics from the company. There are big company, middel company and small company. The big company should make some finalcial’s report which make some form, like balancesheet, income statement, notes, management’s report and auditor report. For the small company the should make some simple report. All of them are similar in other country. The speciality from the financial’s report in Germany is they have some report from the auditor for the management and controller. All of teh companies should be used IFRS for the making of consolidation financial’s report for his company or they make private report for his own which require all of the HGB rule. From the commercial Code (HGB), the mothode of buying or acquisition are the basic rule, but the pooling of interest are depend on the condition.

All of the companies in Germany should make his financial’s report. They can used IFRS for the rule on the financial’s report making or they used germany regulation for the consolidation. And all the watcher or reader should becareful whe they read the financial’s report. They must be know about what regulation has been choosed from the company.

 

Referensi :

Akuntansi Internasional by Frederick Choi