Henselmann K, Meier E (2021)
Publication Language: English
Publication Type: Other publication type
Publication year: 2021
URI: http://hdl.handle.net/10419/248386
The codification of the German accounting system has a history going back to the 18th century. In 1945, it was already bipartite, differentiating between rules for stock corporations and rules for other commercial undertakings. Accounting legislation did not change much until 1959. More changes came with the redesigned Aktiengesetz 1965.
Four years before German reunification, with the so-called ‘Bilanzrichtliniengesetz (BiRiLiG) published on 19th December 1985, the transposition of the Fourth Council Directive 78/660/EEC on single accounts and of the Seventh Council Directive 83/349/EEC on consolidated accounts took place in 1986 in West Germany.
The paper analyzes the initial application of member state options contained in the directive on single accounts. Regarding recognition and measurement, the choice of German legislators could be progressive or conservative (CP score). Regarding presentation and disclosures, there was a choice between more informative or more restrictive (RI score).
After 1986, many amendments took place. They triggered several legal German acts relevant for accounting in the “Handelsgesetzbuch”. Over the years, this resulted in a shift in the German accounting system for single accounts. A separate part explains the accounting in East Germany until reunification in 1990.
The results summarized in CP scores and RI scores over the year are displayed in a diagram. Most noticeable, the system made a major change to more progressive accounting in 2009. In general, there are extensive relief provisions for medium-sized and small companies, making the disclosures mainly restrictive.
APA:
Henselmann, K., & Meier, E. (2021). The History of Accounting in Germany - Transposition of European Accounting Directives.
MLA:
Henselmann, Klaus, and Elena Meier. The History of Accounting in Germany - Transposition of European Accounting Directives. 2021.
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