In Germany, the Act to Modernize Accounting Law (Bilanzrechtsmodernisierungsgesetz - BilMoG) which was promulgated on 29 May, 2009 introduced some major changes to the German Commercial Code (Handelsgesetzbuch - HGB), such as removing the close connection to tax rules and controversial policy options currently available to companies for fmancial reporting. This chapter provides a critical examination of the recent reforms of the regulatory environment of accounting in Germany. Data for the study were collected through a document survey and interviews of a selected group of key individuals and an online focus group, who had an influence on and/or interest in accounting regulation in Germany. Findings of this study raise some interesting issues related to international fmancial reporting. We found that as a result of the reforms, German accounting shifted away from the Continental European model and closer to the Anglo-American model. We also found that the reforms were aimed mainly at addressing domestic concerns, and not necessarily at converging with International Financial Reporting Standards (IFRS).
|Title of host publication||Advances in business and management|
|Editors||William D Nelson|
|Place of Publication||New York|
|Publisher||Nova Science Publications|
|Number of pages||17|
|Publication status||Published - 2012|
- Handelsgesetzbuch (German Commercial Code)
- International Financial Reporting Standards
- Bilanzrechtsmodernisierungsgesetz (Act to Modernize Accounting Law)
Hellmann, A., Perera, H., & Patel, C. (2012). Realities of globalization of financial reporting standards: evidence from accounting modernization in Germany. In W. D. Nelson (Ed.), Advances in business and management (Vol. 5, pp. 205-221). New York: Nova Science Publications.