Realities of globalization of financial reporting standards

evidence from accounting modernization in Germany

Research output: Chapter in Book/Report/Conference proceedingChapter


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).
Original languageEnglish
Title of host publicationAdvances in business and management
EditorsWilliam D Nelson
Place of PublicationNew York
PublisherNova Science Publications
Number of pages17
ISBN (Print)9781621005100
Publication statusPublished - 2012


  • convergence
  • Handelsgesetzbuch (German Commercial Code)
  • International Financial Reporting Standards
  • Bilanzrechtsmodernisierungsgesetz (Act to Modernize Accounting Law)

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    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.