Mandatory Adoption of International Accounting Standards in Germany: Financial Statement Effects

Author

Sarah Wagemann, University of Texas Permian Basin

Date of Award

Summer 8-2012

Document Type

Thesis

Degree Name

Master of Accounting (MAcc)

Department

Business

Supervisory Committee Chair

Barbara Scofield, Ph.D.

Second Advisor

Shirley Davenport, Ph.D.

Third Advisor

Wilma Dye, Ph.D.

Abstract

This paper addresses the mandatory adoption of International Financial Reporting Standards (IFRS) in Germany in 2005. The financial, statement effects and the variability of key accounting measures are analyzed under the German Commercial Code (Handelsgesetzbuch - HGB, German GAAP) and IFRS. I find that book value of equity and net income are slightly larger under IFRS than under German GAAP which reflects the fair value orientation of IFRS. Only weak evidence exists that the mandatory adoption of IFRS results in significant accounting differences unlike the results found in financial statements of German firms that voluntarily adopted IFRS.

Recommended Citation

Wagemann, Sarah, "Mandatory Adoption of International Accounting Standards in Germany: Financial Statement Effects" (2012). Graduate Theses. 1.
https://falconcommons.utpb.edu/utpb-bus/1