College of Business
Mandatory Adoption of International Accounting Standards in Germany: Financial Statement Effects
Date of Award
Master of Accounting (MAcc)
Barbara Scofield, Ph.D.
Shirley Davenport, Ph.D.
Wilma Dye, Ph.D.
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.
Wagemann, Sarah, "Mandatory Adoption of International Accounting Standards in Germany: Financial Statement Effects" (2012). College of Business. 1.
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