Reporting under international standards (U.S. GAAP, IFRS and others)
International accounting standards are national (U.S. GAAP) or international (IFRS) principles applied to accounting. The standards regulate the principles according to which a company prepares its balance sheet, income statement, cash flow statement and other components for reporting on the net assets, financial position and results of operations.
In addition to the general accounting standards, there are also standards for individual industries and sectors.
What is U.S. GAAP? What does IFRS mean? What is the difference to HGB?
U.S. GAAP (United States Generally Accepted Accounting Principles) refers to the U.S. accounting standards. Accounting in accordance with U.S. GAAP makes it easier to compare the figures of competitors based in the USA. The main addressees are current and potential investors.
IFRS (International Financial Reporting Standards) is another international accounting standard that makes the company's figures comparable in international competition (i.e. not just in relation to the USA) using a uniform standard.
The German accounting regulations under the German Commercial Code (Handelsgesetzbuch, HGB) only allow a comparison with other international companies to a limited extent.
Differences between HGB and international accounting standards
The differences between the German Commercial Code and the two international accounting standards are considerable.
In simple terms, the HGB stands for the protection of creditors and the principle of prudence, while U.S. GAAP and IFRS serve the principle of accrual-based profit assessment and thus create a high level of transparency. Annual financial statements in accordance with IFRS/U.S. GAAP reflect a much more true and fair view of the net assets, financial position and results of operations of your company.
What are other specifications?
Two examples illustrate what other specifications might look like:
- The American parent company (holding company), with which your company is affiliated, wants your German figures to be prepared in the form, language and sequence requested by the holding company.
- One of your foreign business partners specifies that you prepare your business analyses in the form of an Excel file according to their wishes.
When is it worth preparing additional annual financial statements in accordance with IFRS or U.S. GAAP?
- You want to make your figures comparable with international competitors.
- You want to improve your options for raising international debt and equity capital.
- Your potential or existing foreign investors expect you to prepare your accounts in accordance with international standards.
We support you with our expertise when converting your accounting to international standards.
Your advisor for international reporting
Do you have questions about reporting in accordance with U.S. GAAP or IFRS? The easiest way to reach us is by e-mail (info@winheller.com) or by phone (+49 69 76 75 77 85 21).
Do you need support?
Do you have questions about our services or would you like to arrange a personal consultation? We look forward to hearing from you! Please fill in the following information.
Or give us a call: +49 69 76 75 77 85 21