|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.|
The objectives of the DRSC are:
As a member state of the European Union, Germanyis subject to EU 1606/2002 Regulation on the application of international accounting standards (IAS).
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:
Germany has opted for the use of IFRS Standards as adopted by the EU for the following:
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.
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.
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.
The process is described in the IFRS jurisdiction profile of the European Union.
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.
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.